If you think your income is going to solve your money problems, think again. Only you can do this. Here are a few ideas to get you started:

  • Stick to the philosophy discussed in the famous book ‘The Richest Man in Babylon’ by George Clason:
    • Ensure your lifestyle does not exceed 70% of your net income.
    • Over the long-term allocate no more than 20% of your net income to debt.
    • Save or invest a minimum of 10% of net income every month of your life.
  • Use fortnightly or monthly direct debits, they help you build discipline and your ‘automated plan’.
  • Plan your key meals for the week ahead (this takes 20 minutes max) and only buy groceries once per week.
  • Cooking double the amount of food is cheaper than buying lunch each day and healthier too!
  • Do not go near a shopping centre unless you have a clear purpose for doing so. Shopping centres are designed to steel your money.
  • Review and negotiate fixed costs such as general insurances and private health cover. Always consult a pro such as an independent general insurance broker.
  • Write any non-budgeted wants down and stick them on the fridge. Leave them there for 3 days then decide if it is just worthless consumerism or a genuine lifestyle need.
  • Review your personal insurances to see if it is appropriate to hold these policies in your super fund. Please ask us more about this one it’s important!
  • Ditch credit cards or any cards with ‘bonus points’. They are designed to make you spend more than the benefits you will actually receive. Don’t believe us. Jump on our 12 month CashFIT cleanse and you will see!
  • Only buy certain budgeted items when it genuinely has a significant discount. Do not buy discretionary items unless you will gain lasting use and value out of the item. Buy quality and you will have it for a longer!
  • Hobbies cost money, pick the one that is most important to you and buy good quality items that will last. Same goes for your kid’s sports and activities!

Have any others? Please share them below!

Dean Van Zyl [Personal economy consultant]

This article does not take account of your personal circumstances.  Before relying on it to make a decision, you should consider how it applies to your circumstances or talk to us about our process for personal advice.