1. Make a list, not a snowball. Sit down and write out your financial stress points. Money problems can seem like those cartoon snowballs, rolling downhill, gathering speed and size, and making every day financial transactions seem overwhelming. Instead, just focus on two or three financial problems that you can manage now. Imagine how easy other financial matters will seem without these stress points in your life.
2. Track your spending online. These days, with most banks offering access to your accounts online, it’s easier than ever to see where your money is going. Break down your spending and identify a few key things you can cut back on. Then periodically check in to make sure you’re on target. Bookmark your bank’s home page in your browser or download your bank’s app to your smartphone so you can check your finances easily and often.
3. Set a reasonable goal, not a wish list. Unless you win the lottery, you’re not going to solve your financial problems all at once. So, based on the savings opportunities you identified in Step 2, set a monthly savings or debt payment goal for yourself that you can reasonably live with.
4. Turn payday into savings day. Set up an automatic monthly transfer into your savings account so that a portion of your pay check goes straight into your savings each month, ideally right after you get paid. That way, before you spend any of your pay check on anything else, you’ve already hit that reasonable monthly goal from Step 3. Some employers offer the option to split your direct deposit between multiple accounts, enabling you to designate a portion of your pay check to deposit to your checking account, and a portion to deposit to your savings account.
5. It’s OK to slip up. We’re only human after all. Just make sure that it’s not too often and nothing over the top. Going to dinner somewhere special for your anniversary? That’s OK. Going on a European shopping vacation because it’s Tuesday? Not so much. When you do go over your budget, commit to setting aside a little extra the next time you get paid.
6. Make it a team effort. Explain your budget to family and friends. Ask them for ideas on how to save, and get their encouragement and support for sticking to your goals.

Need more information on straightening out your finances? Give me a call on 0402 203 303 or email me at rob@rwfs.com.au

“Stop worrying about your finances and start fixing them with the help of these tips:”