Practical finance tips to help you succeed
The path to financial success is not as hard as it would seem. As with any destination, you need to takes the steps required in order to reach it successfully in a timely manner.
To help you along your journey to financial success, here are five steps you can take today that will help you reach your financial destination successfully.
1. Pay yourself first.
‘Richest man in Babylon’ by George S. Clason is regarded as one of the best books written on personal financial success. One of the guiding principles of wealth creation according to the author, is the importance of paying yourself first.
When you receive your wages or bonus payment set aside money for your savings before you start spending.
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2. Keep emergency funds in an online bank.
Why an online account? Not only do they have some of the highest annual percentage rates, they are also not easily accessible with an eftpos card and it takes an effort to transfer funds from your online account into your everyday transaction account.
This effort also gives you a moment to think, do you really need whatever you are about to spend money on.
3. Make sure your financial habits prioritise what you want from your money.
This way, your money works for you and helps to give you what you need, whether that is paying down debt or spending some extra for enjoyment during a certain period.
4. Automate and make your life easy.
Technology makes everything easier and can take some tasks off your plate.
Take, paying bills, have them direct debiting a credit card and then pay off the credit card at the end of the month. Similar process can be applied to your saving, set up automatic transfers matching your pay cycle from the transaction account where your wages are deposited into your saving account.
The more you can take your will power out of it, the easier it will be to achieve your financial goals.
5. Live a little.
Small steps are better than no steps, so even if you start off by saving $20 a week, celebrate the fact that you started saving at all.
Keeping good financial habits doesn’t mean that you cannot go to a nice restaurant or bar occasionally with your friends or loved ones. An occasional treat will ensure that you don’t feel like you’re missing out, it may also help you realise the negative impact overspending is having on your bank balance.
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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.