Your money is probably the one thing you would like to see grow, but that’s easier said than done, right?
There are money saving strategies you can use to help turn your financial situation around, but it does require persistence, determination, discipline and a lot of patience.
Peter Switzer, founder of Switzer Financial Services, listed his top ten ‘life changers’ to put yourself on the road to financial freedom and greater wealth.
He says you first need to do a “brutal budget”. This way you can find out how much you are spending each week month or year. In your budget include all your income and costs.
Do you really need to purchase all those DVDs, or buy lunch five times a week?
Perhaps it’s time to start renting movies and making your lunch at home?
Switzer says to save money, you need to “GST your life” by taxing yourself 10 per cent a year.
If you spend $20,000 a year, tax yourself 10 per cent and you’ll find an extra $2,000 to save. This can then be used to pay off the money owing on a loan or credit card or put away in a high yielding bank account for the future or to buy shares later down the track.
You might want to kill a credit card debt, or buy an investment property or buy some blue chip shares that pay good dividends some time down the track.
“Work out what is important to you — it might be financial success and a happy family — so create plans to make sure these important goals happen,” says Switzer in tip number eight.
After your write these goals, put them up somewhere visible. Don’t just hide them away in a drawer and forget about them. Remember, they are not set in stone. They need to be amended as you achieve goals or circumstances change. Keep them up to date.
Consider chopping up the credit card or hiding it away for a while.
Get a debit card so you know how much you are spending each time you buy something. Use your own banks ATMs to avoid fees for using other banks.
If you don’t use your car much or think you can live without it, consider selling it. This would mean no more services, no more expensive petrol, and no more snacks from the petrol station shops. Of course, this will not be suitable for everyone.
If you do have a car, look after it. Get it serviced regularly and keep the service book up to date. Cars can depreciate in price, but keeping it in good condition can help retain its price. Look after all your assets
And finally, you might consider enlisting the assistance of an expert such as a great financial planner or accountant to put you on the road to money success. This might just be the key ingredient to helping you grow your money.