Changing your mindset regarding money can have a lasting impact on your wellbeing and financial stability for decades to come. There are five small ways that you can be better with your money to help you reach your financial goals and enjoy life.
1. Choose a lifestyle and stick to it
As your salary increases, it is almost automatic to increase your spending. This is referred to as ‘lifestyle inflation’ and often leads to people looking back and regretting their choices and how they have spent their money. To limit this increased spending, it is essential to choose a modest lifestyle that suits you and stick to it, even when your income rises. This will ensure that you can increase the amount of money being saved and help to meet financial goals.
2. Think in decades, not years
Think back to all that you have done in the past decade, and you’ll get a good idea of what you might realistically be able to achieve in the next decade. You might find it helpful to talk with a professional to get your priorities for goals for the next 10 or 20 years. Setting goals for the decade will result in more achievements to look forward to and be proud of in the future.
3. Start saving straight away
So many people put off saving because they think that the timing isn’t right. People want to wait until they’ve paid loans or travelled, and feel they have the time. It is essential that you commit to start saving straight away, even if it’s only a small amount.
4. Think before investing in property
It is ingrained in our brains that we must invest in property and it is placed at the top of savings and investment goals for most Australians. However, depending on your circumstances, investing in property may not be the best option. It may be worth your while to discuss with a financial planner to understand different investment options that may be more effective in helping you reach your goals.
5. Consider what is important to you
Your goal in life should not be unlimited wealth. Take the time to consider what is important to you and make sure that you are spending on things that matter to you. By doing this, you will be able to make smarter choices regarding how you spend your money and achieve the balance between earning, saving, and enjoying life.
At The Farm Protectors, we are happy to develop an appropriate investment plan to help you reach your goals.