PERSONAL FINANCE

  • It is important that we gain an understanding of individual financial situations to enhance assets in our day-to-day lives and to plan for the future.
  • When we think about personal finance it is about achieving your financial goals, and understanding all pathways to attain your goals: from savings, investigation, debt management, to home buying. Creating a plan to accomplish these goals and accessing financial products required to reach goal attainment is worthy of our time to reach best outcomes.
  • Also, personal finance is important in terms of being protected in times of change or crisis, such as illness, job loss, or external factors, for e.g lockdown in the context of a global pandemic). Financial stress can have a significant impact on personal wellbeing, therefore having good personal finance skills can decrease overall stress levels.

 

So what can I do to start thinking about personal finances?

  • Budgeting: draw up a budget using Excel for example. At the top, put your income (the money coming in). Below this, write out all your expenses (food, bills such as electricity, rent, water, Wifi etc).
  • Goal setting: set savings targets and a plan for how you will reach them (e.g. I will save $50 a week towards my new iphone).
  • Credit vs debit cards: using a credit card means that you are taking a small loan out from the bank everytime you use the card, which you then have to pay back within a month or so: or you will be charged extra money. For those starting out, a debit card is recommended, as you are only spending money that you already have in your account
  • Monitor expenses – try to get the best deal on expenses etc on www.finder.com.au, and use websites like getprice.com.au before making purchases.

 

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