All across the country, many of us have experienced significant changes to how we live and work. As well as looking after our physical health, now is a good time to consider our financial health. Here are seven tips to help reshape your finances so you can feel more confident and in control of your financial wellbeing as we transition back to life as normal.
R for REVIEW
It’s important to know how you spend your money so you can work out everything you earn, save and spend.
E for ELIMINATE debt
The key to eliminating debt is to make a plan and stick to it. www.moneysmart.gov.au has great tips on how to get on top of your debt.
S for SET a budget
The 50/30/20 Rule is an excellent guide to sticking to a budget:
50% Needs – the necessities you need to survive, including rent/mortgage, groceries, insurance, healthcare and utility bills.
30% Wants – the things you can do without, such as a Netflix subscription or UberEats.
20% Savings – while this is a great target, regular savings of any amount is an important step in building a strong financial foundation.
H for HONE your spending
The more you know about how you spend money, the easier it is to manage. You don’t need to write down all expenses, but our budget planner can help manage your spending: www/tmbank.com.au/calculators-and-tools/budget-planner
A for AUTOMATIC savings
Set a monthly savings amount and automatically transfer it to your savings account every payday. Forming financial habits can be hard, but setting up an automatic deposit will help develop a healthy attitude toward saving: www.tmbank.com.au/accounts/savings-accounts
P for PLAN for retirement
The earlier you start saving for retirement, the more you’ll have. Look into any government subsidies or employee co-contributions that are available to you.
E for EMERGENCY fund
This is a buffer to help cover an unexpected bill, a loss of income or some other finances. Recommendations for the amount you’ll need vary from having enough to cover expenses for two to six months.
With a little dedication, we can all build healthy habits so we are more in control of our finances now and into the future. For more information on how we can help, please visit www.tmbank/com.au
(Important: Information provided in this article is of a general nature only and should not be construed as providing advice on the topic discussed.)