Most would agree, it would be nice to have a secret formula or special trick that would allow us never to have to worry about money or managing our finances again!

Whilst managing your personal finances can be tricky at times, there are simple methods you can use today that will help improve your financial situation. 

After all, when you reach the age where you’re earning your own money and can afford to splurge, it can be easy to lose track of your budget and financial goals. However, it’s important to ensure you don’t wind up living beyond your means and fall into the trap of financial debt.

Debt Can Be Tough to Address, but It’s Important To Handle it Quick!

According to the Australian Bureau of Statistics (ABS) latest statistics on debt:

Around 3 out of 4 Australian households are in debt and over half (55%) of indebted Australians shared that credit cards were largely the issue. 

Here are 3 simple steps you can take to improve your personal finance management:

1. Set Your Budget:

Having a budget that’s within a certain time period is a great way to have a clear view of how (and where) money comes and goes. 

A good rule of thumb is to budget according to your pay. If your salary comes in weekly, then create a budget per week. If you’re paid monthly, then do a budget that runs on a monthly basis. And so on and so forth. This is also a great way to plan for future expenses, whether that’s your first home, an investment property, or maybe you’re getting a head start to save for retirement?

2. Pay Your Debts:

Managing your debt can enormously improve your financial health. 

As previously mentioned, credit cards can lead to a lot of debt. Where possible, avoid using credit cards for bills or items that are beyond your affordability. If you do need to use a credit card, it’s best to think ahead and to ensure that whatever is spent on the card can be paid off on or before the due date. 

3. Track Your Spending:

This is usually the most logical first step when it comes to personal finances. It’s critical to have a clear picture of how much money you’re earning and what your spending patterns are like. When you take stock of every single thing you spend on, chances are, you’ll be in for some rather interesting surprises.

A sandwich or a pastry with your morning coffee every day can add up quickly. Lunch, an extra mimosa or three with friends—there’s a lot that can add up and slip your mind. Making slight adjustments to your daily expenses where feasible can make a world of difference to your savings.

For example: 

• Cutting back on even a single item; let’s say it could be around as little as $2.50 daily can become $912.50 in a year. That’s almost $1000.00 in savings already!

If you’ve fallen into debt, either out of necessity or from accidentally living beyond your means, addressing where you may have gone wrong in managing your personal finances is crucial. To improve your personal finance management you may want to begin with tracking your spending, setting your budget and paying off your debts.

Trying to find reputable, efficient financial advisers on the Central Coast? Leo Wealth is here for you! 

Our Central Coast financial planning practice is helping people like you improve their financial situation and achieve their life goals. 

At Leo Wealth, we take the time to get to know you. Financial advice is not only about investing or growing your money – it’s about how you can maximise your current situation to provide security and financial wellbeing for your future.

Contact Leo Wealth today!