Right now, many of us find ourselves having to revisit our spending habits and tighten our budgets to get through this virus-led ‘pause’ to everyday life.
But what about when the dust settles and life goes back to normal?
Instead of jumping back into old financial habits, why not take the opportunity to make some positive changes to the way you approach your finances for potential long-term improvement? Here are some ways to give your money habits an overhaul, which may help put you in a much better financial position in the future.
Develop a budget
Yes, we are again recommending making a budget - for the umpteenth time. Putting together a budget that works (so you can actually stick to it) is perhaps the most important financial decision you can make. As stated in a previous article, the best way to create a budget is by reviewing accounts’ credits and debits over the previous few months to understand your spending habits, then creating a spreadsheet listing income and expenses (essential/non-essential).
Remember to review your budget every few months and revise wherever necessary.
Consistently add to a savings account
Even if it’s $20 a month, it’s important you’re adding something into a savings account that you don’t touch, every month. We suggest creating an automatic debit from your main account to your savings account the day after your salary goes in - that way, you might not even notice it’s been deducted!
If you have something on the more expensive side you’re saving for such as a holiday or deposit for a house, set a savings goal. By utilising your budget, you can calculate the maximum amount you can afford to put away each month, and also an estimation of how long it will take you to achieve it.
Cull unnecessary activities
Being told to stay home can help us recognise there were activities we did that we can live without. And while we’re definitely not saying to completely stop doing things you enjoyed once this is all over, there may have been something you realised you didn’t actually miss in the slightest while spending a few weeks indoors. If so, once the whole isolation thing has been lifted why not continue not doing it and saving the money you’d normally be spending on it (and even adding that to your savings account!).
Review your ongoing plans
Once we can all head out and about again, do you really need five different streaming services still? Probably not. Think about cancelling a few of them to reduce your monthly expenses.
While you’re at it, how’s your mobile plan? Do you actually need that much data, considering you’re connected to Wifi most of the time anyway? If possible, consider reducing that too.
And when’s the last time you revisited your car/home/contents/life insurance plans? It might surprise you how much you can save just by getting a few alternative quotes and calling your current insurer advising them of the lower quote elsewhere - they may even match or beat the quote to keep your business.
Find out how financing your next car will work with your budget
Wondering how financing your next car would work into your budget? At Stratton Finance, we’re determined to find the best possible car financing deal to suit your needs, and our huge network of lenders ensures we’ll do just that - every time. Get a free financing quote here and find out what your repayments could be in just a few seconds!
If you’d like to find out more about what we can do for you or if you’d like to take the next step toward getting behind the wheel of your dream car, give the friendly team here a call now on 1300 787 288 or message us online.