Five ways to get better at managing your money
When it comes to managing your money, there are many quick and easy ways to start on the path to getting control of your finances. Here are five of the best.
Use a financial calendar
A big part of money management is getting better at planning your finances. So, if you find it difficult to stay on top of your tax obligations or sometimes discover that your rent is due and your bank account is running low, consider setting appointment reminders for these important money matters in the same way you would for other key dates like a car service, or a doctor’s appointment. That way, you don’t have to rely solely on your memory.
Create a budget
Living within your means is super important if you want to take control of your financial future. This is where having a budget comes in because it can provide a useful personal insight into how you allocate your funds. Start by dividing your budget up into income and expenses so that you can see how you’re placed when it comes to money that’s flowing into your accounts as well as your expenses, or outgoings. From there you can create goals, adjust your habits if necessary, and check in regularly to make sure you stay on track.
The My Finance feature in the Raiz App can assist with this. For more information on Raiz fees, click here.
Get smart on payday
It also makes sense to look at your routine on payday, especially if you tend to blow a lot of cash as soon as it lands in your bank account. Examine your spending habits around payday by itemising all your purchases and see where you can change it up to save money. For instance, if you tend to splurge on new clothes or expensive food when you get paid, consider scheduling a less expensive activity or dining option instead. By being a bit smarter with your pay you can still have fun and you’ll no longer be living paycheck to paycheck.
It is also wise to save on the day you get paid. One way to do this is by setting up a recurring deposit inside the Raiz App to sweep money from your bank account into your Raiz account before you spend your paycheck on discretionary items elsewhere.
Consider micro-investing
Another way to make small amounts of money go a long way is by using a micro-investing app like Raiz. Our smartphone app enables you to grow your money by investing spare change automatically from everyday purchases into one of six diversified portfolios.
By “rounding up” everyday card transactions we can help you make your spare change go further, with the aim being that you invest small amounts of money on a regular basis so that over time, your small investments add up to a lot. You can also set up recurring deposits and savings goals which will automatically invest a set amount on a daily, weekly, fortnightly, or monthly basis.
Get out of debt
It’s hard to get on top of your finances when you’re mired in debt. Interest rates on things like credit cards, personal loans and car loans are often high and servicing them can be a roadblock on your path to better money management.
Here, consider starting by paying off small debts first to get confidence to tackle the bigger ones. You could setup a goal inside the Raiz App to assist in meeting your target to pay off a debt. We know it can be hard, but even taking small steps can add up overtime.
It’s also a good idea to look at your spending habits to see if there are items you can eliminate as well as changing the behaviours that got you into debt in the first place.
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Important Information
The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.
