September 2009
Some people are good with money, others are… well… not so good with money. This may seem like an over-simplification although I’m pretty sure that, if you tried you could reduce everybody that you know into one of these fiscal categories! If you’re in the latter category, it’s not necessarily a problem; you merely need to be more proactive and better equipped!
Take simple steps to protect yourself from yourself! – You may be surprised and discover that you can save for a rainy day or have money for that holiday, even a deposit on a property!
Separating bank accounts is a good way to go. With internet banking it’s easier to keep track of your bills and to keep separate your ‘walking around money’ from your actual savings for bills, repayments and the like. Keep tabs on your disposable income and make sure you’re not eating away at money which has already been spoken for; rental commitments, car payments, etcetera, etcetera…
You can take this one step further. Ask your pay-roll officer, or boss, to split your salary between an every day account and your savings account. Alternatively, set up a periodic payment system between your own accounts to achieve the same result.
Dire or not, draw up a budget. It won’t take long and money will no longer be wasted as every dollar will be accounted for. Also, knowing how much you have to spend means you’ll be less likely to splurge. A humble Microsoft Excel spreadsheet and a few clicks of the auto-sum button will have you on the right financial track pretty quickly indeed. Remember, it’s not necessarily just how much you earn, it’s also important how much you save.
Budgeting is also important as it’ll make you consider and therefore realise your goals sooner! If the ‘The Secret’s’ Law of Attraction doesn’t seem plausible to you, you’ll need to be self motivated and proactive. Remember, whether it’s a blu-ray surround sound home theatre system or early retirement you’re after, you’ll need to save up.
These words seem bitter and hypocritically as I type them as I’ve never been able to make this suggestion work for me, but leave your cards at home. Not having your credit card or ATM card is drastic, but you’ll only be able to spend the cash you carry. Going out is expensive, and nobody wants to appear cheap and miserly, although you can get away with it if you’re a little be more conscious of how much you could (and should) be saving.
Finally, saving your small change in a box, jar or piggy bank and then depositing it at your local branch can be a nice little injection into your savings at the end of the month. Maybe even dedicate this money to luxury items, as a reward for your new found thrift and money saving skills.
We’re all constantly being exposed to insidious advertisements with the sole purpose of separating us from our hard earned bread. Hey! we’re all well aware that we are living in a consumer-centric society. We really don’t need a brand new iPod or the latest Laptop, but saving, budgeting and considering your goals will enable you to spend more wisely.
Tim Davis (Filling in for Evan Davis)
Evan Davis
