I'm no financial planner but what I can share with you are a number of strategies that my clients have developed to help them budget more effectively.
1. The first step is to be totally honest with yourself about your outgoings and take action to make positive change to your spending habits:
2. Go through your bills and list all your outgoings: mortgage/ rent; utilities; fees; loan/visa re-payments; car maintenance; clothes; children; travel; social; sport; hobbies; groceries; weekday lunches; weekend meals and entertainment; professional services (massage, hairdresser, chiropractor) etc. Don't stop until you have everything listed and you get a reality check as to where all your money is going; you might want to make sure you're sitting down!
3. Decide what can be cut from your list of outgoings: what can you easily do without? Simple things, like taking lunch to work three days a week, could save you over $1000 a year! Now decide what you are going to do with all that money you will save each month!
4. Make a solid monthly commitment to clear any credit card debt. Avoid 'impulse buys' by leaving your credit card at home!
5. As soon as you get paid (by your employer), pay yourself i.e. transfer money immediately to a savings account (away from your everyday account). You won't even notice it's gone and will steadily help you to build a healthy reserve!
6. Invest in a qualified financial planner to help you get on top of your finances and start planning for your future. Always seek advice from a trained professional. - RW
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