Managing your finances well is a habit that your future self will definitely thank you for. After all, it can help you gain financial security, prepare for emergencies, and achieve your goals such as buying a home, car or even starting up a business.

However, many still neglect their finances and choose not to save. According to Suncorp Bank's annual Spending and Savings Report, Australian’s spending habits are growing worse since the pandemic started. The report said thousands of young home-seekers are going for impulse purchases over slow and steady savings schemes.

If you’re one of those Australians who are struggling with making better choices when it comes to finances, we’re here to help. In this blog, we talk about some practical ways to better handle your money.

Set goals to inspire you

We understand how difficult it is to resist the impulse to spend your money without carefully considering your financial status. This is especially true when a bright red "SALE" sign welcomes you when you go online, or when you’re following trends and have been eyeing that designer purse or pair of shoes for a while now. This is why motivation or a goal is important.

A goal will help you stay focused on your decision to better handle your money and will motivate you to keep saving or investing. Begin by considering what you want to accomplish in the long or near term. A new business, a dream vacation, or a comfortable retirement are all possibilities. Finally, consider the comfort of mind that financial security might provide.

Whenever you’re tempted to impulse buy or get on tons of debt, remember your goals and ask yourself whether what you’re about to do will get you closer to your goal or not.

Create a budget and save up

Handling your finances well may equate to creating and sticking to a budget, and saving up. To begin with it, make a clear picture of your monthly spending. Create a list of everything you spend money on. Then, determine which are important. These may include food, rent, utilities, and, if applicable, medications. Then set aside a portion of your salary for them.

Once you've budgeted for the essentials, look for ways to save money on additional purchases. You might want to terminate unwanted gym or streaming site subscriptions, for example. Or why not do weekly meal planning and carry a packed lunch instead of buying meals at work or from restaurants? You might be amazed at how those little things can make a big difference.

Grow your money through investing

Don't merely save money for the sake of saving money. Allot some of your savings to your emergency fund and once that’s settled, consider investing your money. Today's market offers a variety of investment possibilities to help you grow your money. Sure, some are fairly risky, but they can pay off well too. You could also consider purchasing a home, which does not depreciate in value over time.

Don’t take too much debts

Taking on loans is not at all bad. Debts allow you to spread the costs of long-term "assets" and improve your underlying investment returns. For instance, getting a home loan enables you to buy and own a home that you would otherwise have to wait for for years if the only option is to save up for it.

However, always be careful not to take on too much debt because it may compel you to sell all of your investments at a time when you should be adding to them, or worse, send you bankrupt. A rough rule of thumb is that if debt servicing charges reach 30% of your income, you may have too much debt already although this varies depending on your income and expenses.

If ever you’re planning to get a loan, make sure to talk to experts like Fastgrow Finance to help you find the best solution based on your current financial status and budget.

Should you need help, choose the right finance products

The right finance product provides the foundation for financial security and achieving your goals. From purchasing your first house to launching a construction project or receiving funding for your business. At Fastgrow Finance, we understand your goals and situation carefully to provide you the best solutions that suit your budget.

If you need any type of loan, feel free to contact us. Our experienced brokers will work with you to find a lender that’s perfect for you.

Contact us through the following channels:

• Phone: (02) 9630 3142
• Email: [email protected]