no-fuss steps today for a difference tomorrow

14 February, 2012

Taking even the first small steps can make a big difference to your financial future. Like stretching before getting into a gym routine, you can incorporate a few bite-sized habits today to grow your money management muscle over time. Here are a few of the practical steps we recommend you take action on now.

The little things are the big things
Saving $20 a week might seem too small an amount to make a difference, but if it is all you can afford right now, it is the small step you need to take. Over time, that $20 will add up, but more importantly your appetite for saving will grow. A bit of money in the bank and the feeling of achievement for saving will in time prompt you to look for ways you can put more money aside. Remember: the little things are the big things over time.

Pay yourself a cash-salary every week
One of the best things about cash is it’s real. We see it leaving the purse and can easily count up how much we’ve spent in the past day or two. Rather than using Eftpos for transactions, pay yourself a cash sum each week. You’ll be amazed at how quickly you build a picture of where your money goes, plus you’ll be safe from any nasty account balance surprises.

Don’t upsize your Eftpos
If you do use Eftpos, think hard about whether you need to ‘get cash with that’. A bit here and there with each or even a few transactions, really adds up.

Keep it crystal clear
One of the golden words in money management is transparency. Keep things simple and clear and you’ll be in a much better position to move forward. Having separate accounts for bills (fixed expenses like electricity, rent, mortgage etc) and living costs (discretionary expenses and spending) is a smart way to keep things transparent. Do a review of your expenses and spending and transfer a set amount to your bills account every pay day.

Automate
Set and forget your savings and bills. If every month, the amount you need for bills is automatically transferred to your bills account and savings is transferred to your savings account, three things will happen: you’ll curb overspending; savings will grow without having to think about it; and you’ll always have the money you need for bills, avoiding late fees etc.

Find your money buddy
A Money Buddy is someone you trust, respect and can talk to freely. Sharing your goals and talking through options is a great way to decide what is best for you, as well a strong motivator to keep on track with your plans.

Get on with it!
If you’ve made a mistake with money in the past, leave it there. It’s just too easy for women to worry unnecessarily about old mistakes and as a result, lose confidence in their money management. Say goodbye to mistakes of the past.  You simply can’t change the money decisions you have previously made, but you can make a conscious decision to not repeat them.