You either run your money or your money runs you.
Finances – the actual “f word” that no one likes using. Sometimes life’s little expenses leads us astray and every once in a while we have to sit down at a desk and really get our finances in order. A financial advisor can help and should be sought after for home loans, insurance and general financial planning. But in the mean time, here are two simple things to keep in mind when trying organise your money.
1) Attitude is everything
Your attitude is absolutely everything. If you are a “throw caution to the wind” sort of person, then we are talking to you. Psychologist Dr Peter Collett, says there is a definite link between people’s individual psychology and how they deal with money. From his knowledge and research, he suggested that millennials are the biggest group struggling with their finances, with rising rent and general living costs.
What’s more, a study conducted by Science revealed that poverty effects your cognitive function. The more stressed you are about your financial situation, the more likely it is you will make bad and ill-informed decisions with your money. The way to counteract that understanding your financial situation and then making positive strides your stress and attitude will affect your budgeting. That’s when financial planning and having an advisor may come in handy.
2) Understand your daily budget and revise it every month
It sounds tedious but the next step in sorting out your money issues is to figure out your daily budget, Forbes suggests using a online tool to help you. Once you have a general idea, then work out how much you are earning every day. Whilst doing this, keep in mind that a portion of that money is never going in your pocket because you are spending it on power, paying for the internet, Netflix, rent, insurance, food, petrol. So take all of that away from your daily spending money. It will seriously change the way you send and save your money for the better. Then, every month, revise your spending habits, then put aside a certain amount every paycheck.
With those two things in mind, go forth and starting securing a better financial future for you and yours.
Border Bank not only offers superb advice but can help you plan for the big and little things in life.