Make 2015 a prosperous year by taking control of your finances and working towards greater financial stability.
Better Money Management
We can always do with more money. But, how we manage the money that we do have enables us to buy assets and to improve our lifestyle. It also gives us the opportunity to enjoy our lives without added financial stress. However, to achieve this we need to think strategically.
One of the best strategies to adopt when it comes to money management is to discard old ‘bad’ habits and to adopt new ‘healthier’ ones. This will then allow you become financially successful. The following tips will allow you to get started:
Set yourself financial targets – The only way you can achieve financial milestones is to set yourself goals. These goals need to be specific, measurable, achievable, realistic and carried out within a determined timeframe. For instance, setting yourself the goal of reducing your credit card debt is not enough. Instead, make your goal to pay off your credit card debt of $4,000 within6-months without incurring more debt.
Set yourself a budget – One of our greatest financial downfalls is to spend without making ourselves accountable. To identify where you need to make changes, track your income and expenditure using an online budget calculator. This will then allow you to set yourself a budget and to stick to it.
Grow your net worth – Your overall financial aim should be to increase your net worth, which is the total of your assets minus your liabilities. This means adding-up the value of your assets, such as savings, superannuation, shares, property and other investments, and then subtracting your liabilities, such asyour home loan, credit cards and other debt. This will then give you an indication of your net worth, which you can then increase over time by setting yourself a budget and financial targets.
Get a home loan health check – Review your home loan. Compare it to others on the market and calculate if you can make any savings. If your home loan is not competitive, then it may be time to talk to your lender.
Reduce bad debt – Bad debts are those that will not create you wealth, such as credit card debt and store accounts. By reducing your bad debt you are then able to increase your good debt, or those that create wealth, such as a home loan or an investment property loan.
Do you want to create greater wealth? Then contact eChoice and discuss your finance options Today.
Written by eChoice