As a working professional, you understand that managing your wealth is a long-term commitment. And the sooner you start investing in savings, retirement, and investment, the better. But there are a number of things you can do every day to improve your finances.
This month, implement these five simple changes and you are sure to see a change in your financial wellbeing:
1. Create and stick to a budget
If you haven’t done it already, a monthly budget will help you accurately track your expenses and see how much you actually spend every month. You might think you only spend a certain amount on groceries or entertainment, for example, but once you start setting a spend ‘ceiling’ and then checking what you can actually buy within that ceiling, you might be surprised at what your expenses really are.
2. Set monthly goals
As part of your budget exercise, set monthly goals that align with your overall financial plan. For example, if you are busy paying off a debt and have set the deadline for the end of the year, divide the repayments into monthly goals – this will make them easier to achieve. Check on your progress with a daily money minute – this is time put aside to check on your expenses from the day before and evaluate them against your goals.
3. Remove temptation from your inbox
You’re probably signed up for a bunch of special offer or retailer emailers. And when you see them, you’re tempted to shop, probably for things you don’t really need. Unsubscribe from those emailers and you might find yourself with some extra cash at the end of the month.
4. Open your bills
Whether paper or electronic, you need to open and acknowledge your bills as soon as you receive them. There is no reason to live in denial – if you don’t open the bill, it will still be there tomorrow so it’s best to get it over and done with. Pay your bills on time to avoid any penalties.
5. Get on the same page as your partner
It’s striking how many people have no idea about their partner’s financial life. In order to maximise your wealth, you need to share the same financial goals and understand each other’s financial commitments. Talk to your partner about money – you might be surprised at what you’ll learn.