It’s time to understand your numbers
One in three Australians are embarrassed by their bank account balance.1
Is this you? Do you even know what your bank account balance is? Despite your best efforts and hard work, it can often feel like money goes out as fast as it comes in.
We talk with people every day who are lacking clarity on their current financial situation, much less their financial future.
The first step to setting yourself up for future financial success is to get a handle on your numbers.
Why financial literacy matters
Knowledge is power. The better you understand your money the better your money management will be. Coming to terms with what you earn, how much you spend, where you can save, and how you can invest all play a part in transforming your financial future.
When you take charge of your money situation, you’ll start to make better decisions on a range of things, such as:
- Spending habits
- Budgeting
- Debt management
- Investment opportunities
- Planning for the future
You might have heard the saying: “A person either controls their finances or their finances control them”.
It’s time to take control.
Financial freedom is different for everyone
There is no one-size fits all approach to finances or budgeting. Your path to achieving financial freedom and success depends on so many factors.
But one thing that everyone can do is get clear on their numbers. Here is a very simple formula to begin the process:
Monthly income – monthly expenses = monthly savings.
Some examples of monthly expenses could include:
- Housing
- Food
- Transport
- Education
- Phone and internet
- Insurances
- Utilities
- Debt repayments
- Hobbies or entertainment
- Clothing
- Child care
- Pet expenses
- Monthly subscriptions.
This exercise will be a great starting point to see you understand your financial picture better.
Next steps
To dive deeper into growing your financial literacy and building some clear money objectives, come along to our next free Scorecard Workshop.
We work with you to get more clarity on your numbers. We share our Scorecard formula to help you understand your current finances and set tangible goals for the future.
Register for the free Scorecard Workshop now.
- Source: Finder Consumer Sentiment Tracker, January 2021