Plan and stick to a budget

We all spend money on a monthly basis to live, but few people really know where all the money goes.

Take the time to create a budget by listing all the things you need to allocate funds to on a weekly/fortnightly or even on a monthly basis. Try to eliminate any wasteful expenses or items you can live without. You will be surprised how even the little things will add up every month, which can translate into hundreds or thousands of dollars a year. For example, if you spend $5 a day on lunch, during a regular work year, it equates to approximately $1,300 a year. You can look at ways to save in these areas, such as bringing lunch from home.

The money you save can be used to pay down your debts with the highest interest or put aside as a deposit for a house.

Credit cards

Credit card companies are always trying to lure you into spending more with offers of a low introductory rate, ever increasing spending limits and reward points, which can redeemed for prizes. Do not fall for the traps and get back in control with your spending.

Write down all the cards you have, what the interest rate is, what the limit is and what you owe. Focus on eliminating the debts with the highest interest rates. Look at reducing the credit limits to avoid the temptation of making a purchase you cannot afford.

Consolidating debt

A debt consolidation loan can be taken out to pay off all your debts, such as multiple credit cards, personal loans or car loans. You are then left with one monthly payment that is set at a lower average rate than all your debts were before.

Start Saving

Just by putting $100 a fortnight aside, you can save approximately $2600 a year. This money can be set aside for retirement (you can save over $85,000 for a retirement at 55 using this method), or it can be used as a deposit a house, a purchase of a new car, wedding or for a variety of other personal reasons.

The above tips are just a guideline to get you on track to managing your money and planning for a successful financial future. We recommend that you speak with family members who have good money management skills to educate yourself on saving and debt management. Alternatively, one of our financial planners will also be able to work out with you a strategy that suits your current financial circumstances, yet also helps you to achieve your goals and plans for the future. Speak to one of our financial planners at Intellichoice now on 1300 55 10 45.