Five financial tips from an older generation
This article provides five financial tips that all generational groups can benefit from. When it comes to money, some things stay relevant regardless of your generation. So here are five tips for getting, and keeping, control of your finances – for life!
1. Living within your means seems obvious, but surprisingly, many people don’t. It’s why credit like store/bank cards and shop-now-pay-later facilities are so popular. Unmanageable debt has the power to keep you awake at night – and not in a good way. But you really can survive without the latest device or car.
In short, don’t be a slave to possessions; why lock yourself into debt more durable than the item?
2. Save. The world is full of opportunities: travel and socialising, etc., but don’t underestimate the security of a stash of cash. With a small, regular commitment, you can have a life and save too.
Consider this example:
An initial $500, plus $50 per week over five years, could accumulate almost $15,000! (Assuming no withdrawals and 2.5% profit over the period).
Additionally, developing a savings habit will help create a good credit score for, say, a future home loan.
3. Buy quality items like clothing or furniture. Pieces in good condition will generally last longer, and with care, can become classics you won’t need to replace.
4. Learn to cook. Nothing beats a home-cooked meal for cost-savings. Find a recipe, make a list, shop and cook. Not sure what you’re doing? YouTube is your best friend. For $30, you could cook yourself and a friend a similar meal costing around $80 in a restaurant. (There’s the week’s $50 for your savings account!)
5. Make a budget and stick to it. Record income, then expenses beginning with non-negotiable ones like rent, home payments, insurance, transport, groceries, etc.
If you can’t account for some of your money, a budget will help you identify areas of overspending so you can reallocate funds to savings and discretionary expenses.
The government’s MoneySmart website provides a budget planner to get you started, or create your own using a spreadsheet.
Every generation believes there’s nothing to learn from the other, but the truth is we’re all learning, all the time.
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