With nearly a third of Australians concerned about how much debt they need to pay off each month, finding ways to manage your financial future is crucial. Here are five tips to better manage your money.
New research conducted by BT Financial Group found that 32 per cent of Australians often live ‘pay cheque to pay cheque’ and 30 per cent are ‘concerned’ by the amount of debt they repay on a monthly basis.
Bryan Ashenden, head of financial literacy and advocacy at BT, says “no one is immune” to the stress caused by planning their financial future, but there several steps we can all take to improve our savings.
“We all have worries about our money from time to time, but what can make a difference is to put steps in place, so that we worry less,” Mr Ashenden said.
BT’s five tips to manage money are:
1. Crunch the numbers
According to BT, knowing how much money is “coming and going out” each month is a critical first step. There are plenty of online tools to help.
2. Get a handle on debt
BT said there are two factors to this. First, it’s important to know exactly how much money is owed and second, how much it’s costing you.
Once you’re across this, the next step is to see if your loans can be consolidated to get a better rate.
3. Create a savings plan
Developing a plan that will allow you to accumulate savings and prepare for any unexpected costs is a great way to “create peace of mind”, the company said. Even if the amount saved is only small, every bit helps.
4. Consider your super
For Millennials, a dollar invested in super today will mean $10 in retirement, meaning investing in superannuation can make the costs of retirement more manageable, BT said.
5. Seek professional advice
Going it alone can be tough and professional advisers can help “identify your financial and lifestyle goals, design a plan”, including providing support in sticking to that plan or even making changes when your circumstances change.