If you talk to any professional financial advisor in Perth, one of the first things they will suggest to you is that you create a budget and stick to it. A lot of people are overwhelmed at first, but if you use these five simple steps, it is a lot easier than you think. You may even become an expert.
Monitor all Spending
You want to know where every dollar of your money goes. Most people have no idea what they spend their money on and are shocked when they actually keep track of it for a month. If you have the last month’s receipts and bank statements, go through them. If not, document everything you spend for a month and then see what you come up with.
Add Up All of Your Debt
Make a list of every single debt you owe and who you owe it to. How much are you paying per month? Put your debts on a priority list, starting with the highest interest first.
Make a Realistic Budget
To be realistic, write down what you need first and then figure out how much it costs. Hopefully, it won’t be more than you make. The best scenario here is that you will find out you are spending a lot more than you need to and that you can have money left over to start paying off debts.
Develop Good Financial Habits
People who are financially responsible are that way because they have good habits. Three of the most important habits are to stick to your budget, “pay yourself” every month and put it in a savings account or other investment and pay your bills on time.
Set Financial Goals
It doesn’t matter what they are quite yet, but it is important to set financial goals. This helps you organise and focus on financial success.
Call Approved Financial Planners
It is never too early to start planning for your future. Call us today: 08 6462 0888.