It’s a good exercise to list your goals into big ticket items such as buying a house, getting married, saving for your children’s education, and retiring, and then smaller things that you can improve/change now to help you reach your larger ambitions in the future.

1. Set up a budget (and stick to it)

Yes, this is an arduous task but believe us, it makes for an interesting and eye opening read after a month or two. You will be able to see exactly where your spending in specific categories can be reduced, and it can be as simple as making slight lifestyle changes. And, there are some great apps you can download to do this, so you have your new ‘budget’ with you all day!

2. Learn about money and finances

Often it’s not until you are looking at buying one of your big ticket items that you actually have an in-depth look into what the financial system is offering you. What is off-setting? If interest rates go down, how does that effect my savings? What factors influence my super? Is investing in shares too risky for me? How do I minimise tax? Firstly, talk to a financial expert like Andrew to help you understand what you can do to make your cashflow work now. Also, follow the Australian Financial Review (AFR) on social media so you get the latest news  in your news feed.

3. Pay off all your smaller debts first

Credit cards and short term loans are very useful, and sometimes necessary. If you are savvy with your spending you can even make a credit card work for you, however if they are not managed properly they also come with the highest penalties. Don’t get caught in the cycle of interest accruing on small debts, pay them off first and then you can focus on saving money to put towards one of your financial ambitions.

4. Out of sight, out of mind – set up a DD to a separate account

Money is becoming invisible, and where this can be a problem with over spending, it can also be used to your advantage. As soon as you are paid, set up a DD to take 5%, 10% or whatever you can afford, and place it in a high interest savings account. And, the key is to forget about it! If you can’t see it, you won’t spend it and over time you will be amazed at how much you can save.

5. Have a financial plan

It goes without saying that a plan really does help. Developing your own personal financial strategy, together with an industry expert, gives you specific targets to work towards over a defined period of time. This is a ‘subject to change’ plan. Because there are so many variables in finance it is wise to be flexible, but it will help bring clarity and direction to a busy and confusing sector and ultimately less stress for you!

For more advice on ways to plan for your financial future arrange a consultation with Andrew today.