14 Dec 2018
You're doing well saving up, getting ready for next year's rego and then – BAM! – your account is empty, but what went wrong?
Getting on top of your finances is challenging for so many people. You budgeted and tried to be careful, but then Christmas, birthdays, a couple nights out and suddenly – you're back to square one! You don't want to risk massive FOMO by sacrificing your social life, but you need to save for those pesky essentials and big ticket items. So, what can you do?
Whether you want to get out of debt or you just want to save up for a big purchase, here are our 3 simple steps to owning your finances:
Your parents might shake their heads and you telling you to stop going on nights out, and let's face it, they're not wrong. However, that doesn't mean you should stop going out with your mates all together; you just need to make a realistic budget for yourself. If you really value your nights out, you may need to make other sacrifices. Stop getting coffees out, cut down on your take-out, plan your groceries, go in on shared meals with your housemates, use Uber less and start busing it more. But – be realistic. Sticking to your budget is like sticking to your diet; if you know you'll have a cookie every night, make up for that delicious cookie during the day by sticking to your diet.
2. Stop tap & go and start managing your cash flow
If the problem is that you're too careless with money then start paying in cash to give yourself a visual and tangible way of spending. With tap and go becoming the norm, it's easy to tap away your savings without even realising. So, next time you're on a night out, take the cash you have budgeted for the night with you, so you are more aware when you're nearing the end of your budget for the night. Just make sure you have your phone to order an Uber if you suddenly find you've spent all your moolah.
3. Squeeze every penny!
Be aware of where you're spending your money, as there may be small amounts of cash slipping through the cracks. You might think $3.50 a day on coffee isn't much, but that totals $1,277.50 a year. Being aware of even small expenses; whether it's buying a tub of ice cream as a treat or purchasing a coke at the corner store, these things add up. Keeping on top of these small expenses doesn't have to be challenging, with the latest budgeting apps being like an accountant in the palm of your hand.
Managing money is challenging, so that is why we at Sunshine Loans we want to support you in owning your finances. It may seem like a painful chore, but once it becomes part of your everyday routine, it should become natural and painless. Being in control of your money provides greater independence, freedom and empowerment. So, get ahead of you finances today and start budgeting!