When life is chaotic it’s best to keep things simple. This is the same with your money principles. Keep it simple, and practice the ‘back to basics’ money management principles to help you stay financially fit and healthy.
1. Cut down on money going OUT
Numbers don’t lie, and this message of ‘spend less’ has been around for awhile and unlike fashion trends, this simple yet powerful tip never goes out of style.
If you want to get ahead in life financially, nothing beats this goodie – slash your splurges and get in the habit of a regular savings motto. Be disciplined to spend your own money rather than swiping or tapping the plastic. Remember the plastic money is not yours, and if it gets used too often, you’ll end up paying big on the interest that accrues on your repayments.
Don’t overspend and keep to budget that is realistic and easy to stick to.
2. Get rid of debt quickly
Having a big mortgage these days is a norm, and that dream of owning your own home comes at a hefty price. So, if chasing the great Australian dream is a goal of yours, then do so in a smart way.
Get to know your financial net-worth position really well, and divert any surplus savings straight to your mortgage. Try to cut down on your biggest expense item as fast as you can by making extra payments where and when possible.
Not only do most people have a mortgage to pay-off but credit card debt is another expenditure item that is soaring up north and not down south.
Therefore, it goes without saying, spend less which helps to minimise credit card debt and the extra money left in the kitty should hit the mortgage. It’s a win-win!
3. Get more money coming IN
It’s not rocket science but if you can increase or generate more money coming INTO your kitty then you’re able to build wealth by starting an investment plan whilst paying off your debt.
There are many ways to generate extra income and different types of income such as investment income like dividends, interest or rent. You can seek out promotions to increase your take home salary or increase your working hours or take on a side hustle and freelance.
Increasing income means more power and opportunities to build wealth over time to ensure a gooey overflowing ‘pot of honey’ is waiting for you for retirement.
These are the ‘back to basics’ good old-fashioned money principles, if followed, will keep you financially fit to super healthy. It’s not easy as there will be many temptations along the way, but starting a good financial habit early on gives you an edge over the long term.
For more help on reaching your money goals, talk to a Dome Financial Adviser in Charlestown, Tamworth and Hunter Valley.
The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.