Having a steady job gives you an opportunity to see money come into your bank at a steady rate. When you can see a certain amount of money flow into your account, it becomes just as easy to build a lifestyle revolving that amount. But when it comes to saving this money, is it as easy as watching it come in? From a far distance, it certainly gives off that impression. But the reality is that many individuals, both rich and poor have a very hard time managing their savings and planning for retirement.
It’s become a standard that each adult has to save money for the future and to help plan for their retirement or any family or personal emergencies such as surgery or medical bills that can rise quite fast. This list can go on and on and can certainly cripple you quite early in life if not managed correctly.
So we have offered three money management tips that our Financial Planners Brisbane believe will be able to assist you in your endeavours and ensure that you can maintain a lifestyle that you dreamed of while being able to plan for your early retirement.
1. Track All Your Expenses
When you are spending aimlessly and looking for each new spend in the market, you are not holding yourself accountable for all the tiny spends that can act as leaks in your bucket of savings. This is a common problem in many communities and each not holding themselves accountable for their actions. Therefore, if you can measure it, you can only improve from that point forward. Aim to quantify your spending and measure according to a system of one-offs and subscriptions.
This allows you to do a monthly audit of your spending in comparison to your earnings and gain an understanding of where your money happens to be going. If you were not tracking your expenses, those countless candy bars you were buying would not have been calculated into the factor, but by tracking diligently, you can eliminate wasteful spending.
2. Rid Yourself of All Debt
Our financial planning team always recommends the removal of debt and anything remotely close to it in your life. Debt can linger on for years, and the build-up of interest makes it almost impossible for anyone to save properly. The best option if you do have all sorts of debt, is to tackle them one by one. By knocking them down one by one, you are using all your resources to rid of each one individually instead of having to split your earnings without being able to pay off any of your debts.
3. Start Small, Finish Big
No one ever thinks about retirement when they are fresh out of university and in their first year of a new corporate position. But as your age lingers closer to 65, so does the appearance of your superannuation and your savings. By starting young and holding yourself accountable in your savings compared to your earnings each year, you’ll be able to contribute much more to your retirement or emergency fund.
Hopefully, you have found a lot of value out of these three tips our team has provided you. It can definitely seem extremely daunting and often the hardest part of any task is to begin. We hope that you take these three simple mundane tasks and build it to the point that you are able to plan securely for retirement and live a very exciting life.
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