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Your Money

Mastering your money

Q. I have to say I am pretty bad at managing money and I never seem to get ahead but I now have young children and I want to set them a good example. What would you suggest? 

A. There are lots of tips, rules and advice I could share with you but I think you have to change your money ‘YOU’ first. So, here are some rules to follow and if you master these, you will be setting a great example for your kids and it will prepare you to step up your moneymaking knowledge.

First, start saving every month. I often advise doing a budget — you get one off the internet — and then GST your life to try to cut back your spending by 10%. This gives you a saving amount. This could go into your super fund if you want to really build up your super, or into an investment fund or a fixed deposit at the bank. You could even use it to help pay off your home loan — that’s my preference.

Second, become a debt expert. Avoid it where you can and refinance your home loans and credit cards to the lowest rates on the market. Also learn about the tax deductibility of loans for business purposes.

Third, shop before you buy. Use the internet, the phone, join buying groups, networks, etc. and use eBay. Also learn to haggle and even try the line: “Can I get 10% off for cash?”

Fourth, don’t always buy new! Go to garage sales and become a passionate price expert when you come to buy something. Buying a fridge? Become a fridge expert. Buying a car? Become a car expert as every $100 you save is then going to go to you and not someone who has exploited your easy going, amateur ways. 

Fifth, take care of what you own. Get your car serviced, make sure it’s washed, and park it out of the sun. Get your shoes resoled before they have to be tossed away. Next, start becoming an expert on where best to save and invest money. Stop reading the fashion pages and sports section and read the money pages. I guess you’re already doing that, given you asked this question.

Finally, get into planning your spending, your saving and wealth building. Swap your amateur money ways for professional ones. I’m not saying you have to become a tightwad. In fact, if you follow my rules and become increasingly wealthy, you will have a whole lot of money to help people with and you will become known for being generous! 

Need help with your finances? Book a complimentary first appointment with Switzer Financial Services today.

 

Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

Published on: Monday, November 02, 2009

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