We know the word 'Budget' isn't necessarily the most exciting word in the dictionary, but it's an important one to say the least. At Advanced Wealth Group, we're frequently asked for finance and money management tips and our first question is always, 'do you have a budget in place?'. Today we're going to address this hot topic and give you some of our favourite money management tips to help you get your finances under control and grow your wealth without the stress.
Budgeting is essential to successful money management. How can you achieve your financial goals without understanding where your finances stand right now? Developing a budget doesn't have to be overwhelming. Your budget can be as simple or as involved as you'd like. What you really need to be concerned with is understanding what comes into and out of your bank account each month. To put it simply, if you're spending more than you're earning then you need to address your budget as soon as possible. By developing a budget you'll have a clear idea of what you can afford to spend and if you're on track to achieve your goals.
2. Cut back.
No, we're not saying that you need to stop enjoying life. Now that you have your budget in place, we're asking you to analyse what you're spending your money on. For example, if you're spending $50 every month on a gym membership that you don't use, why not cut out that expenditure and put that money into your savings account? You'd be surprised how quickly the little things add up and allow you to create a nice nest egg for yourself. A good rule of thumb to follow is if you're paying a subscription fee for something, but you haven't used it in a month, cancel it. This allows you to free up your financial commitments and put that money towards something you really want or need.
Typically when people ask us about money management tips it's because they're in the market to make a big purchase such as a home, or they're looking to consolidate their debt. At Advanced Wealth we're happy to assist you with any of your needs, but a good place to start on your own is saving money. Bulk up that bank account by minimising your spending and of course, making a conscious effort to set money aside into your savings. You can try setting up an automatic deposit and automatic payments. Then, each time you get paid all your expenses will be taken care of and your savings will be addressed immediately, thus making it easier for you to see what is left for 'spending' money without stretching your budget.
If you're following those three simple rules then you'll be on the right track to minimise your debt, save for a big purchase or just save for a rainy day. Keeping your finances in line with money management is essential to decreasing unnecessary stress and giving you the financial freedom to live the lifestyle you want. Are you looking for more information on money management? Contact our friendly team today to get started!