loader image

Home > Blog > Are you ready to take control of your financial situation?

Are you ready to take control of your financial situation?

Date: 4 February 2016

You may be one of the millions who made a resolution this year – are you going to take action to make it a reality? If taking control of your finances is on the top of your list, these tips will help you on your way.

Tip 1 – Clearly state your goal

Example – pay off the credit card and keep the balance paid each month; save for my wedding, house deposit or overseas trip; be ready for retirement etc

Write down the amount of money you need to meet the goal. Remember, you have 12 months to get there.

Tip 2 – Know what you earn, and what you spend

Most of us think we know what we spend each year, but are really surprised when it is written down and added. Don’t leave anything out – coffees on the way to work, lunches, gifts for family and friends, groceries, household bills etc.

Tip 3 – Write a Budget

There are 2 ways to have more money available for your goals – 1. Earn more money or 2. Spend less. Earning more money may mean taking a second job, selling things you no longer need, taking in a boarder, as examples. Spending less, means working through all those costs you identified and prioritising them. A budget is a simple summary of your income and expenses on a regular basis and it is the simplest way to manage and plan your finances, and the easiest way to find those extra dollars to help you achieve your goal.

Tip 4 – Smaller targets are easier to hit

If you know how much you need to save eg, $10,000 for your holiday, then breaking it down into smaller weekly amounts will make it more likely that you will save. It is much easier to find $50 each week, than $2,500 in a month for the airfares! The earlier you start to save, the smaller the weekly amounts need to be.

Tip 5 – Be realistic

If your budget shows $50 per week available for saving, don’t try to squeeze $100 out every week. If you eliminate all of the fun things in your budget, you will stop saving and never start again. Make the saving amount manageable.

Tip 6 – Stick with it

Don’t get $500 saved towards your holiday and celebrate by spending $450 on a new television! Re-visit your goal and remind yourself what you want to achieve for the whole year.

Tell your accountant or advisor about your goal and let them help you work towards it. Good luck.

Start today

To discuss with one of our estate planning experts. Start by emailing us at enquiries@rm.net.au

Contact Us +

Know More

NSW First home buyer property tax

NSW First home buyer property tax

From Saturday 12 November 2022 first home buyers can opt in to pay an annual property tax rather than stamp duty when buying their first home. The Bill to introduce this measure has completed its passage through NSW parliament and received assent today [Friday 11...

read more
Are Your Contractors Employees?

Are Your Contractors Employees?

Two landmark cases before the High Court highlighted the problem of identifying whether a worker is an independent contractor or employee for tax and superannuation purposes. Many business owners assume that they will not be responsible for PAYG withholding,...

read more
Succession planning – NSW farming families

Succession planning – NSW farming families

The stamp duty exemption for farms in NSW has recently been broadened and will greatly increase the succession planning options available to families in the rural sector.   The past exemption for transferring farming properties between generations requires the...

read more