Planning for 2010
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Unless you are a seasoned saver, getting your finances under control can seem easier said than done.
But as the world economies continue to crumble and our nation grapples with the resulting downturn, there’s no better time to start learning how to live better for less.
According to Big Sky Financial Solutions, weathering the economic climate will, in many cases, require reining in any carefree spending habits. So, what exactly do we need to do in order to plan for a prosperous 2010?
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“Take control and run your life the same way you’d run a business,” says financial expert Kieren James, of Big Sky Financial Solutions.
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“Budget, set goals and have a plan. If a business failed you could always try again but you only get one shot at life so why risk not being prepared?” he says.
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James is the Senior Financial Planner at Big Sky Financial Solutions, a new branch of the business that has been designed to make financial advice more accessible and relevant to members. He says the key to developing a budget is to “keep it simple”.
“Don’t over complicate things. Make sure you include all your expenses – even those that occur annually – this will lessen the shock to your cash flow when those bills do arrive,” he says.
As well as resisting your urge to splurge, James says reviewing the budget every six months should be an integral part of your financial plan.
He advises you award yourself a set amount of spending money each fortnight and then reserve the remainder to pay off bills and bolster your savings.
“It takes commitment to do this but if you stick with it you will end up with a disciplined spending habit,” James says.
Although James agrees it’s fine to “live in the now” he says this outlook must be balanced with a plan to ensure your future financial wellbeing.
“It’s all about reaching the right balance. I don’t know anyone who aspires to be old and broke yet so many people are … or at least that’s the way they are heading. We all need to take responsibility for our own actions,” he says.
And while the prospect of penny pinching may spell doom and gloom for a lot of people, James says it’s important to keep things in perspective. “I’ve heard people say ‘Oh no, we might have to turn off the Foxtel’. Well if that’s the worst it gets, then they’re doing alright.
“Life is a fantastic thing. Our passion, health and family are the real important things. Let go of obsessions beyond our reach and make sure we have the right priorities. It may seem like a struggle now, but with a little bit of planning, everything will work out in time,” he says.
As for those who truly cannot trim any more fat from their budget, James suggests they explore all avenues available to them, such as social security, government stimulus entitlements and talking to credit providers to restructure debt repayments.
“Big Sky Financial Solutions provides an initial consultation free of charge and can quite often assist people by steering them in the right direction,” he says.
For more information, contact a financial expert at Big Sky Financial Solutions on 1300 700 189 or email contactus@bigskyfs.net.au
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Top 5 Budget Tips
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1. Don't spend more money than you have.
2. Write a grocery list and stick to it. Only get what your household needs and never go shopping when hungry.
3. Keep your receipts and list your daily expenditures. At the month's end add up those expenditures and groups them so you get a snapshot of where you're spending too much.
4. Pack your own lunch on weekdays and treat yourself to brunch on the weekend. You could save thousands of dollars each year.
5. When looking to make a purchase stop and ask yourself if you need it. Walk away and have a think about it. Remind yourself of your financial goals and remember that by living within your means you are also helping the planet.
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This article has been prepared for general information and has not considered any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (express or implied) or other information should be acted on without obtaining specific advice from an Authorised Representative of Big Sky Financial Solutions. Big Sky Financial Solutions (ABN 95 133 452 589) is a corporate authorised representative of Outlook Financial Solutions Pty Ltd (ABN 40 083 233 925, AFSL 240959).
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