Money is still very offensive to talk about in our culture. Asking someone what they earn or how much they have, can end in some very heated arguments. Lots of studies have shown that most people are more comfortable talking about any other subject then their finances. Why is the mindset behind savings still so taboo?
With one third of Australians experiencing financial stress now and over 50% of Australians regularly worrying about money, it’s more important than ever to discuss why we feel this way and figure out how we can make money a comfortable topic to discuss.
We need to take a moment to look internally to outline our problems and what the solution may be. We have all sorts of factors that sit just below the surface of our consciousness, and they pull and prod at you every single day. This could keep you from saving money even though you want to do so.
Our brains are designed to conserve energy and create routine – they’re designed to go on auto pilot. And our habits can be formed over weeks, years or even decades, but they don’t always serve us well. Whether it’s ordering a takeaway when we’re tired, or shopping when we’re sad, these small habits and choices can add up to significant sums of money over the course of a year. They can be the difference between having the cashflow to have a healthy emergency fund or not.
5 quick tips to help you save money:
- Spend less then you earn. – track your income and your expenses to understand what you are spending your money on. Do you buy a magazine every week, is it required? Do you need a side hustle to bring in more income?
- Identify your triggers – It’s Friday night and you are happy to spend $200 on after work drinks. Is this to keep up with work mates? Is it a reward? Try and change this habit and go for 2 drinks, $20 and save the other $180 per week or invite your work mates to your house and BYO.
- Plan for the future – put goals in place for the short and medium term and put figures on these and start saving – set up a bank account for your goals and transfer money in there each week to build this so you can achieve your goals when the time comes.
- Make savings a habit – it is not fun to being with but the earlier you start and make it a regular habit, you will enjoy the benefit and rewards of having cashflow there to attend to your needs and wants when required.
- Celebrate your success – make your progress visible so that you are more likely to stick with your plan and when you achieve the goal, reward yourself with the holiday or even an ice cream
To chat more and get your money in order – make a cost and obligation free appointment today.