Now that you’ve now caught up on all the Netflix series, online masterclasses and Instagram keeps telling you that “you’re all caught up”, deep inside you know, it’s time to work on your finances… But where should you start?!
If there has been a benefit to quarantine, it’s that we finally have time to do the ‘life admin’ that’s been bugging us for so long, but most people tend to leave the finance discussion last, or simply not have the discussion at all. But why is that?
What we’ve found is that most people simply don’t know where to start, what they should do versus what they want to, or even what they actually can do. Hopefully these steps will help;
- Make a goal (and stick to it!)
You would never jump in the car and start driving without knowing where you’re going, so why would you make a financial decision without a goal? Much the same as driving, you may end up at a fork in the road – should I buy this property, or that? Should I get that car loan? Should I have a holiday overseas or maybe a cheaper one locally? Your goal can be emotionally driven or financially driven (or both), but the key is to make sure you pick a goal and try to stick to it as much as you can. If you start driving to Melbourne and halfway you decide to go to Brisbane you will have a lot of lost ground to cover!
- Do a budget!
Most people hate the word, but it’s the most valuable thing you can do. You might think of a budget as restrictive or a waste of time, but it should always be the foundation of any of your financial goals and plans. The purpose of a budget is not necessarily stop or reduce your spending, but it helps to understand your spending and how you might be able to reach your goal. We have a great budget planner we would be happy to share with you, so just let me know and i’ll send it to you.
- Work out what’s possible
This is where we come in. We can help you navigate through your goals and even give you some tips and tools to create a good budget, but if you aren’t able to execute your plan right now it’s important to understand what you need to do to make steps towards it. How much deposit do I need? How much income do I need to earn? What can I do right now? We can help you through this process so you are clearer about what you need to do.
We love talking through ideas and goals with our clients, so if you have something on your mind, feel free to give us a call: 1800 3 PEASY.