Set some goals
Regardless of your life stage, a useful starting point to get your finances in order is to set some personal goals. Research shows we are often more motivated when we have clear targets to work towards.
Your goals will vary according to your life stage but a common tactic is to divide goals across those that can be achieved in the near future, the medium term and the long term.
Next, draw up a personal budget
A budget is an extremely useful financial tool. You may want to use an online budget, a budgeting app or simply work out the numbers using pen and paper. The way you develop a budget isn’t the key issue. What really matters is that you track how much money is coming in through your wage, salary or other sources of income, and compare this to money going out in living costs.
In this way, your budget shows if you are spending more than you earn, while highlighting areas where you can cut back to bring your money back under control.
If your budget shows you are spending less than you earn, it’s time to put the surplus cash to work building wealth for the future.
Put savings to work
Once you have identified some potential savings, you need to decide the best way to use this money to achieve your goals.
You may choose to use any spare money to reduce debt. Or savings can be used to grow your wealth through a variety of investments including superannuation.
Have a money mentor
Getting your finances in order is not hard but it can call for commitment. Many people partner with a financial adviser who is a money mentor, someone who provides expert advice and motivation to stay on track with money goals.
No matter what stage of life you’re at, or what you financial goals look like, a Mortgage Choice financial adviser can help you develop a road map to regain control of your cash and turn your money goals into reality.