Money management

Trimming the (expenditure) fat!

Once you’ve selected your buckets, now it’s time for…

Step 4 – ‘Document’ where you will cut back spending.

Certain areas of expenditure will jump out at you when you go through the process of reviewing your expenses over twelve months. While you sip on a wine, tea or coffee, you should decide which areas you will specifically target to reduce your expenditure.

Once you’ve reached consensus you should:

  • Define what expenses you are targeting and put a dollar value to it.
  • Make sure the target is achievable.
  • Ensure there is a desire to achieve the change by everyone involved.
  • Note down a simple plan to make it happen, what the challenges could be and sign the document! Keep it simple. No more than one page and no less than half a page. 
  • Start imagining and discussing living out the plan.
    • Walking the grocery aisles and not purchasing packets of chips, the expensive cheese and quite so many avocadoes and processed food.
    • Cooking bacon and eggs on a Sunday rather than going to a café.
    • Updating clothes less regularly – wearing existing ones for longer.
    • Having a regular Sunday lunch at home with family where you cook rather than eat out.
    • Travelling on four-star holidays instead of five star or staying with family for as long as you can handle it!
    • Saying ‘no’ to impulse purchases (if that’s your vice).

Having a willingness to crunch your budget and reduce spending is a key to property, investment and lifestyle success and achieving your Property Planning goals.

As with each step, search for non-financial upsides such as enjoying superior health and quality time with family. These aspects can be as motivating as the benefits of feeling like you have control and order over your finances plus the added ability to enhance your financial situation.

 

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.

Podcast
Google Play
Google Play
Call now – 1300 896 045