5 Tips for Securing a Healthy Financial Future

Time fliess... We are only a few months away from Christmas, which is often one of the most expensive months of the year. Now is the ideal time to take a good, hard look at your finances and assess how you are tracking with respect to your financial goals. We have put together five tips to help put you on the path to a healthy financial future.

5 Tips for Securing a Healthy Financial Future

Ditch the Plastic

People are frequently lured in by the promise of credit card reward points, the seemingly lengthy repayment period (hey, I will have at least two paydays before it is due!), and the convenience of a credit card. But perhaps the most common reason is that people want to buy things outside of their budget. It’s a formidable temptation to help you pay for that holiday or cover some extra bills. However, it is too easy to swipe away and rack up massive debts that are difficult to repay. Next time you are tempted, look at fast online loans instead to help you cover those unexpected medical bills or car repairs.

  

Live Within Your Means

A staggering number of people live paycheck to paycheck, and many are spending more money than they make each month. This has a cumulative effect, as debt quickly adds up and interest is applied to it each month. 

Living outside your means leads to ever-increasing debt and does not allow for any unexpected expenses. In fact, it is impossible to achieve any of your financial goals while living beyond your means. 

Know the Difference Between Wants and Needs

If you have been spending recklessly, you may be having trouble differentiating between wants and needs. Our basic human needs are for food, water, clothing, and shelter. In today’s world, car, transport, internet and cell phone expenses could certainly be included in this category.

You might notice that electronic devices, Netflix, Spotify, daily coffees, a BLT from that lovely little café near work, a new collar for your dog, shoes that match your new navy suit perfectly and that expensive toy that your kid has been wanting for ages don’t make the list. This is an opportunity to identify these non-essential items and cut them out of your monthly spending patterns.

  

Implement a No Spending Month

It takes 30 days to break a habit, which is why a no spending month is a fantastic idea to reset your purchasing patterns. It should also leave you with a bit of extra money in the bank to put towards paying off debt or saving for upcoming expenses.

To get started, you will need to write down all your expenses. Break them down into essential costs such as food, rent or mortgage, and electricity bills, and discretionary spending. Discretionary spending includes socializing, your gym membership, eating out and takeaway, buying new clothes and all of those wants listed above. 

Be Budget Savvy

My favorite way to budget is to look at what changes I can make at home that won’t impact my lifestyle. One example is to buy up big when household staples go on sale, especially if they don’t have an expiry date. 

Toilet paper, dental floss and dishwashing liquid can be stored in the cupboard for when they are needed. Looking for your supermarket’s weekly grocery specials is also an excellent way to cut down on costs. If ground meat is on special this week, you can be sure that I am cooking a bulk batch of Bolognese. 

You can do it! It will be worth the effort when you see your progress towards a healthy financial future.