Women and Money – Good Financial Habits/Finding a Place to Start
It’s time for that financial overhaul. Maybe you’re tired of getting to the end of the month and counting the days (hours?) to the next pay day, or maybe it’s the reverse and you have excess that lingers in your bank account doing nothing.
Whatever the motivation, it’s time to make your money work for you!
So, where do you start?
My advice is get a handle on your income and outgoings. In particular those outgoings. Just do it! Put aside some time and really look at what’s going on in your account.
This will identify what expenses you absolutely need to cover – and how much you need in order to meet these. A budget planner may help – there are plenty available and some you can even download as an app on your phone.
Set a budget for your groceries, fuel/travel, clothes shopping, entertainment – and stick to it. There is a strong sense of achievement at the end of the month if you come in under budget.
Are you overspending? Do you need to reign in your spending somewhere? Good budgeting will help identify these areas.
If there is excess it’s time to make that work for you (not for the bank).
- Do you have an emergency fund? Cash that you can readily access should the car break down for example.
- Are your insurances relevant and up to date? In other words, is your income protected in the event you are unable to work as a result of sickness or injury.
- Are you saving for the longer term? A separate savings pot that can be used for a “rainy day”.
- Starting to add to your retirement fund. It may be a way off (or not) but this can go a long way in providing an income for you when you retire.
I think the harder part is having the discipline to save. So my tip is: save now or pay later. Far too many people wake up in their sixties and realize they don’t have enough money. I say, let go of the mentality of spending money for immediate gratification to protect yourself in the long-term. ~ Jeannette Bajalia.
Georgina Wright is a Chartered Financial Planner and Partner at Abbotstone Financial Solutions. Connect with Georgina on LinkedIn.
