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8 Ways to Improve Your Finances

No matter how much money you have, it’s never too late to start developing healthy financial habits, especially if you have a goal in mind.

When it comes to your financial wellbeing, what you do with your money and how you manage it everyday matters. Feeling in control of your finances is a big part of achieving financial wellness. But sometimes it’s easier said than done.

Let’s unpack some practical ways you can improve your finances to give your financial health a boost.

How to improve my finances: Budget and track what you spend

How can you effectively manage your finances if you don’t know your numbers? The first step to gaining control of your finances is seeing where your dollars go. One of the best ways to do this is to set up a budget and track every dollar you make and spend.

After a month of tracking your spend, take a look at where your funds went. Did you spend more than you earn? If so, it’s time to make some cuts. Look at where your funds were swallowed up. How much did you spend on things like uber rides, eating out, entertaining and online shopping? Every dollar adds up especially when you look at it over time.

For example, if you purchased a coffee for $5, five days a week for 4 weeks, that’s $100. It might not seem like much, but multiple that across a whole year and you’re looking at $1,300 spent on your caffeine hit alone! Knowing where your money is going will help avoid overspending and start creating better spending habits. So, instead of buying a coffee every day, you might decide to limit how many you buy each week.

Simple changes like this will eliminate unnecessary expenses and give your budget more breathing space.

How to improve my finances: Find a better bank

Changing banks can be a bit of a hard basket, but if you’re being slugged with high fees and interest rates, then you might want to consider switching to another bank that’s more competitive.

How to improve my finances: Shop around and compare

It also doesn’t hurt to compare insurers to see if you can get a better deal on any insurance cover you hold. Speak to your current insurer and let me know you’re considering changing providers. You might just find it’ll result in a better price on your policy (it’s always easier to keep an existing customer than it is to attract a new one!).

How to improve my finances: Reduce your debt

Getting out of debt is an important step on the way to positive financial health. Interest payments are a killer, so any opportunity you have to your reduce debt – be it a credit card or a loan is going to save you more money and remove any financial pressure you may be feeling.

How to improve my finances: Get rid of all those cards

If you own more than one credit card, only keep what you need and relinquish the rest (after you’ve paid them off of course). In doing so, you’re removing temptations to spend, limiting your debt and avoiding unnecessary credit card fees and charges.

How to improve my finances: Avoid buy now, pay later offers

The option of using buy now pay later for purchases may seem like a good idea at the time, but did you know it could appear on your credit report? If you plan to apply for a big-ticket loan such as a car or home loan, then it’s best to avoid using buy now pay later as it could affect your loan application.

How to improve my finances: Set aside funds for a rainy day

It’s always a good idea to be prepared for the unexpected. Depositing some money every payday towards an emergency fund, will give you peace of mind when life takes a turn and unexpected expenses pop up. Even a small amount of cash set aside frequently could go a long way toward your savings goals.

How to improve my finances: Consolidate your super

Whilst retirement may seem like a while away, the sooner you start planning, the better off you’ll be when the time does come around. By getting onto it now, you can ensure you’ll be able to live comfortably once you stop working.

Your superannuation can be a tax-effective way to save for your retirement. If you know you have multiple super accounts floating around, it’s worth consolidating them all into one super. This’ll reduce your fees, freeing up more of your contributions to be invested.

If you’ve held multiple jobs you may also have multiple super accounts. If you track down your lost super and consolidate it into one account, you’ll reduce the account fees you pay, freeing up more of your contributions to be invested.

Key takeaways for improving your financial health

Keeping your finances healthy is an important step to maintaining a happy and comfortable future. Things to keep in mind:

  • Track your spending and budget wisely
  • Take control of your debt and shop around
  • Plan for a rainy day with an emergency fund
  • Start saving for your retirement

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