7 Ways You Can Make Better Decisions With Your Money Today

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Top Excuses for Not Saving Money & How to Get Rid of Them
July 10, 2017
Gold Coast
Money isn’t everything, but it ranks right up there with oxygen

Rita Davenport

Your financial position has a huge impact on your life simply because you need a certain amount of money to survive. So, if you’re fighting to increase your savings and evidentially not getting anywhere, it can be a frustrating spiral of despair.

Have you ever watched someone who earns a fraction of your income buy a new car outright, something which you most certainly couldn’t afford to do? The reality is, you don’t have to earn fortunes to make your money work well for you, you simply need to learn how to manage your finances.

How To Make Better Decisions With Your Money

#1 Plan, Plan, Plan

Planning for an unpredictable future may seem impossible, but is it really that sporadic?

Begin by looking at your spending and income in past few months. Bills, home payments and salaries do not tend to change drastically over a period of months, making these a good indication of your expenses and income for the months to come. This is called your cash flow forecast. Once you have the basis of your expenses, you can make allowances for random or unexpected payments such as holidays, vehicle breakdowns or unemployment. Planning is an essential key to managing your money more effectively.

#2 Automate Your Savings

You’ve planned to put 20% of your income into your savings each month, but after two months the plan fell through. Sound familiar?

Saving is an important part of effectively managing your money for the future, especially when those unexpected payments pop up. Most banks offer automated payments, so get one set up to your savings account each month. The best part is, saving will happen without you even noticing, and next time you check your bank account you won’t be deceived by a ‘pre-savings’ balance.

#3 Develop A Professional Team of Experts

Why do you need a financial advisor, accountant and solicitor? It’s their job to know what’s best for you, your money and your business.

Financial professionals are there to help you manage your business efficiently, identify where there are faults and help you plan for your future. Your professional team should have experience in your field of work or industry and will have your best interest at heart. It’s important to do your research before choosing the right team to help you with your finances. Have everyone wondering how you bought that new car!

#4 Pursue Your Interests

Are you working hard or hardly working?

There’s a strong weight between doing what you love and doing what makes you money, but there doesn’t necessarily need to be a choice between the two. Earning and investing money most likely won’t work for the long term if you’re not passionate about what you’re doing. Those who identify their goals and aspirations are far more likely to pursue them, particularly if they are striving to do something they love. Which brings me onto the next point …

#5 Make Financial Goals

If you’re not heading for a destination, you can’t expect to reach it. Recognising your financial goals is a crucial part in taking control of your finances. Ask yourself the following questions:

  • What are you saving/investing for?
  • How much do you want to save?
  • How much can you save per week / month / year?

Once you have identified these answers, you can track your income and outcome and resonate with further adaptations you may need to make. Setting weekly or monthly budgets for everyday living, such as groceries and fuel, can really help you reach your financial goals. $15 for avocado and toast each morning? Think of how much could you save in just one week from making a simple change like having breakfast at home.

#6 Don’t Spend in A Bad Mental State

Debt leads to sadness, which leads to emotional spending, which leads to more debt, and around we go again.

Unfortunately, we are known for making bad decisions when they’re in a bad frame of mind, so if your head isn’t in the right place, an impulse buy probably isn’t the best idea. Wait for a time when you’re feeling in a more stable position and you can make a better judgement call, or seek professional guidance from your financial adviser to discuss your situation.

#7 Review Your Credit Card Relationship

Credit cards can be great for getting bonuses, holding a reservation and, if you’re good at using them correctly, for getting a good credit rating. But if used unwisely, credit cards can cause severe financial strain.

It can be tempting to overspend on your credit card by purchasing things you wouldn’t otherwise be able to afford. As a rule, you should avoid using credit cards for items you can’t pay off immediately, or at the very latest, within the month. Unless you have a strategic plan to pay them off in full and quickly, the higher interest rates and fees will swallow you into a debt trap!

If you’re ready to take control of your money in 2018 and secure your future, contact our financial advisers today.

Dane Jansen
Dane is a Managing Partner/Responsible Manager at Positive Dynamics. He embraces his leadership skills to provide guidance to his clients giving them the confidence and conviction to achieve financial success.
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