Money management

Pay yourself first

A key principle many of those who’ve created great wealth to live by is the concept of ‘pay yourself first’. This simply means figuring out how much you want to save each month, tuck that away, and only spend what you have left.

In other words, defining your ‘Surplus Cash Flow – Money Goal’, is defining how much you want to pay yourself first, before committing to any other expenditures. Don’t save what is left after spending, spend what is left after saving.

When you get a pay rise, deposit all, or most of the increase – refrain from increasing your spending to match your salary rise like most people are tempted to do.

If you are self-employed or receive commissions, bonuses or overtime, don’t be reactive and a slave to your changing income. Be proactive. Determine your expenditure so that you’ll understand that everything above a certain amount will go towards your ‘Surplus Cash Flow- Money Goal’.

The Property Planner’s money tip – Gift yourself simplicity!

The payoff for developing the right habits is fairly obvious. It generates the personal order and financial success you’re striving for. Another benefit that may be overlooked, is the windfall of simplifying your life.

Everything we do that provides order and clarity in our lives, also at the same time, reduces complexity, which is a rewarding benefit in itself.

‘Simplicity is the ultimate sophistication’ Leonardo Da Vinci

‘Simpler can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.’ Steve Jobs

Step 1 – Move all expenses from your bank accounts into a spreadsheet

Step 2 – Move all your expenses into categories.

Step 3 – Define your buckets and the categories within each!

Contact us today to book in a free confidential property planning, strategic mortgage broking, money management or property select meeting.

The Seven Steps to Money Management Success is intended to be an information resource only and contains information of a general nature. It is not intended and does not constitute or act as a credit quote, credit proposal disclosure document or preliminary credit assessment. Further, it does not constitute or contain legal, taxation, financial product or financial planning advice. You should seek independent advice regarding these matters relevant to your own circumstances and individual needs from an appropriately licensed party. All information is provided by PPA with due care to its accuracy, however, no representation or warranty is made as to its accuracy, currency, completeness or reliability. It is your responsibility to assess and verify the accuracy, currency, completeness and reliability of the information and whether it applies in your individual circumstances.

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