Today is the first day of the 2013/14 Financial Year, so lets start out by saying Happy Financial Year to us all. With that out of the way, lets get to some tips for better Money Management that I do and would recommend you do this financial year.
1) Take charge of your finances. Rather than living week to week and hoping it all works out, get a plan, write down some goals and then develop a course of action.
2) Work to a budget. A budget allows you to set priorities, set benchmarks and provides a string line for how you are travelling financially throughout the year.
3) Get organised. Develop a filling system for all your receipts and paperwork
4) Identify wastage. Look for areas of your financial expenditure that is not producing what it once was. It might be things like Cable TV, a second fridge, an inefficient heater. My power bill dropped $300 when I turned my second fridge off.
5) Look at your credit card interest rate and how you use your card. There are different deals that suit different users. Some have interest free periods but then higher annual interest rates whilst others have no interest free periods but slightly lower rates. Work out which one is better for you.
6) Spend a month and write down every single cent you spend. You will be surprised where your money goes. Make adjustments accordingly.
7) Start an electronic money box. Open a bank account in a bank you don’t normally bank with. (this is so you are less tempted to take it out). When you are doing internet banking, skim your accounts and take your account down to the nearest $5 or $10. So if you have $68.40 in your account, transfer $3.40 into your money box account. You wont miss the money and it accumulates for one of your savings goals.
8) Aim to live on 80% of your income. Sow 10% into your church or a charity if you are not a churchee and 10% needs to be saved. You may want to read 24 Reasons Why I Love to Give
9) Read Richest Man in Babylon. A brilliant book that was a life changing book for me.
10) Get rid of your landline. In my house, 3 of the 4 residents have mobile phones – so why did we need a landline? I cut it off and it saves me a couple of hundred dollars a quarter.
11) Go to your bank and negotiate a better interest rate. Tell them you want a better deal or you will go elsewhere. I have a number of mortgages and when I applied for the loans I asked for 0.5% reduction – and got it. 8 years later I went back to them and said they needed to do better. I got an additional 0.3% reduction so I am now 0.8% below the standard variable.
12) Contact your internet provider – particularly if you have been with them a while, and tell them you want a better deal. I was paying $99 a month for 50 gigs of download a month and once I changed to a better plan, I am now paying $79 a month for unlimited downloads and this also includes the line rental.
13) Pay for advice. (Except for this blog which is free). Get a good accountant, stockbroker, financial planner.
14) Some people leave their computers on all the time. A computer burns about as much electricity as a 60watt light globe:- so its costing you money – turn it off when you are not using it.
15) Teach your kids to turn off the lights when they leave the room. When you have done that, please come and teach my kids cause I have failed in this area.
16) Pay your bills on time to avoid penalties.
17) This is one the Pilt family really struggle with – return your hired DVD’s on time.
18) Have a will. I have seen major issued caused when a person didn’t have a will and died unexpectantly.
19) Read my blog on Money Management Tips from the Bible
Hope this helps. I am interested in hearing your money management tips. What works for you?