How to improve your finances in less than 10 minutes
Sometimes, saving can seem like an impossible task, especially when you’re on a fixed income. In a blog post titled What are you saving for?, superannuation fund Equip noted many Australia households were failing to achieve their savings aspirations due to, “ineffective savings habits.” A fact highlighted by recent survey data.”
But with the right attitude, a bit of discipline and a willingness to make a few minor behavioural changes, squirreling away a little bit of money for a holiday, luxury purchase or even just a rainy day is not only possible, but simple.
Here are four ways to improve your finances in less than 10 minutes.
1. Create a simple budget
It’s impossible to save if you don’t know how much is coming in, and how much is going out. Budgets tend to become needlessly complicated if you’re not careful, but a simple one is not only a good tool to keep track of your expenses, but also get you in the right mindset to avoid any unnecessary expenditure. 10 minutes is all you need to draw a simple one up and provide yourself with a good tool to visualise your finances.
2. Stop spending $5 bills
You’ve probably heard of this trick before, and that’s because it’s highly effective. Next time you notice a bundle of $5 bills in your wallet, instead of spending it take it home and put it in a jar, container or drawer. This is a good way to avoid any impulse buys, and you’ll be surprised how much you’ve saved by the end of the month.
3. Stop using your credit card
You can’t argue against the convenience of a credit card, and you can understand the appeal of being able to make purchases without having to dip into your savings. But credit cards are the bane of every saving plan. Australia’s credit card debt stands at $33 billion, so you can see how eliminating it can make a big difference.
4. Take a deep breath before any discretionary purchase
This one might seem a little out of leftfield, but pausing before any discretionary purchase to contemplate your action is an effective way to avoid impulse buys. And let’s face it, how many times have you returned from the shops with an item of clothing you’re only going to wear a couple of times before it becomes a permanent wardrobe adornment. Next time you’re about to buy something, take a deep breath and ask yourself, “Do I really need this?”. You’ll be surprised how many times the answer is no.
5. Contact a financial planner
If you’re having serious difficulty meeting saving goals, it’s worth considering the services of a financial planner. Equip financial planners work with you to identify long-term objectives and build a personalised financial plan that suits you.
What’s been your most effective saving strategy?
Equip manages $7 billion of investments for members working across a wide range of Australian industry sectors. This superannuation fund has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years.