Start by getting on top of your spending habits. Break down your spending categories and look at which ones are most important. You may find some expenses like monthly subscriptions coming out of your account that you forgot about. Cutting down on some of these non-essential expenses is a good way to save some dollars – especially during these uncertain times.
It’s a good idea to know where your income comes from and when it comes in your account. It’s important to keep track of money coming into your accounts and deduct your expenses to ensure you are not spending more than you earn.
Paying down debt feels good. The fastest way to pay down debt is by contributing more than the minimum requirements. However, you should always check the terms and conditions of paying your debt down faster, as some institutions have maximum repayment limits within certain periods and additional fees associated with paying it down faster.
If you have the financial capacity too, it’s a good idea to pay down debt whenever you can. Chipping away at debt can make huge dents over time.
Emergency funds are just part of life. It’s always a good idea to consistently contribute towards long-term savings for times of emergency. This could be unexpected expenses, bills or you know, pandemics.
Consistency is the key here. Setting specific and time-bound targets for your savings is the best way to slowly build up your emergency funds and will help you feel more financially secure overall.
One of the most dreaded times of the year; Tax time. Taxes can often feel overwhelming, especially if you haven’t prepared your expenses or thought about potential deductions. Planning ahead and keeping track of your receipts can be useful for when tax time comes around.
It may also be helpful to get in touch with a licensed CPA to help you maximise deductions and make the process a little easier.
The first step to get the ball rolling is to check your credit scores. Knowing your scores can help you know you’re standing when it comes to borrowing money. You can obtain a free copy of your credit report from Equifax
And just like that, you have the foundations you need to gauge your financial pulse. Good on you! Keeping on top of your finances can be challenging at the best of times, so it’s a great start to be ticking things off the checklist. Feeling in control of your finances goes a long way in ticking off those milestones in the future and your journey to financial wellness.
If you need help at any stage navigating your finances and need some help feeling on top of your money, reach out now or book a budget planning chat with the team.
