Modern women do a lot – they’re mothers, businesswomen, partners and so much more. But even Wonder Woman needs a little help now and then.
In the past, earning a decent wage was enough to ensure financial security but times have changed. It now takes careful planning, monitoring and constant revision to ensure financial goals are met. But like any challenge, the pay-off (or in this case pay-out) is well worth the work.
Below Liberty Financial provides six money management tips to get you started:
1. Track your spending habits
It’s easy to lose track of how much you are spending when you earn a comfortable salary. No one is immune to falling off track financially – not even millionaires. So before you reach for that next pair of shoes or tell yourself that jacket is ‘essential’, check exactly how much money you’ve spent in the last month and ask yourself ‘Can I really afford this?’. It could be the extra money you need for your next holiday or investment.
2. Find an additional source of income
It’s also easy to fall into the trap of working all week only to collapse in front of the TV at night – but this won’t bring you success. Achieving your financial goals requires dedication, which means working even when you don’t want to. As the old adage goes ‘work smarter, not harder’. Think of innovative ways to increase your income – like doing freelance work, writing a blog or creating an online marketplace.
3. Cut the plastic
If you’ve been relying on plastic and racking up thousands in interest charges on a credit card – it’s time to cut your card in half. If you have existing debts consider consolidating them into a personal loan. Alternatively, if you’re good with credit perhaps consider changing to a credit provider that offers benefits, like flying or shopping points, to suit your lifestyle needs.
4. Invest
So you’re financially set, you’ve got savings and you’re on track to achieving your goals – what next? An investment is one of the best ways to set you up for financial security. First of all, you have to consider how long you wish to invest for. Would you prefer to invest in a property over a long period of time or a short term investment with a lower return? A smart move is to find a good financial adviser that can set you on the right path.
5. Monitor your return on investments
If you have investments, it’s a good idea to regularly review the returns you receive for each. Alternatively, if you’re too busy to track this yourself consider engaging a financial planner who can manage this for you. A financial planner can help you make smarter investment decisions, especially if you have little to no experience in the investment market.
6. Have a retirement plan
Finding the right super fund is like dating. Choose the right one and you could set yourself up for a long and happy future, however set your sights on the wrong fund and you could end up regretting it. Some industries, like those covered by industrial agreements and members of defined benefit funds, are unable to elect a chosen super fund. To find out if you can choose your fund check with your employer or the Australian Taxation Office (ATO). If you’re eligible, do some research and find out the best option to suit your needs.
Taking action, only to give up when times get tough, isn’t enough to earn you superhero status – you’ve got to be consistent. So now that you’ve set your sights on financial success, and have all the knowledge you need to get started, you’ve got to see things right to the end. While it might seem hard at first, remember one small step in the right direction is one step closer to achieving your goals.
Disclaimer: Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a finance professional to consider how appropriate the advice is to your objectives, financial situation and needs.
