These are extraordinary times and for the time being, life is being turned upside down. There are going to be a range of lived experiences as we all try to get through this, so I want to acknowledge that it will not be easy for some. However, there are a few things everyone can be doing at the moment to make sure their money goes a bit further and give themselves the best chance of coming out the other side of this in the best financial shape.

For many in Australia things have been coasting along reasonably comfortably for a long time now, but the present situation presents the perfect opportunity to get back to basics when it comes to money. Here are a few tips to help you manage your money a little better to give you a little more breathing room…

1.  Track your spending

I’d suggest there’s never been a more important time to know where your money is going. Start engaging with the app your bank has on offer or use something like Pocketbook if you either don’t like what your bank has on offer or you have banking with multiple institutions. Knowledge is power.

2.  Stick to a budget

Once you know where your money is going you can start to effectively budget by knowing how much you need to fund the different expenses in your life. Work out what your fixed expenses are and which expenses you have some flexibility with and if you have a partner, work together on this to make sure you are on the same page for best results.

3.  Avoid using credit wherever possible

There’s a big difference between using a credit card for convenience and paying it off each month vs accumulating debt and paying interest. Credit cards come with high interest rates and it can be a quick downward spiral if you get caught up in trying to pay off debt at those kinds of rates.

4.  Shop around for EVERYTHING

There’s no time like the present to start being a frugal shopper. Frugal doesn’t have to mean cheap, it just means making sure you get value for money for every dollar you spend.

My advice is to start with your fixed bills… there’s no footy to watch and not much happening socially. What better time to invest a little time in reviewing things like your electricity, gas, phone, internet, insurances, etc… and make sure you are only paying for what you need. Often companies will lead you into a bargain trap… paying what sounds like a good deal but paying for things you don’t actually need or won’t use.

Use comparison websites to quickly see how your current contracts stack up against what else is out there and in most cases all you then need to do is ask your current provider to match what else is on offer. They don’t want to lose customers in the best of times, let alone now!

When it comes to shopping at the supermarket, if you have the cashflow, buy bigger as you almost always pay less overall. For example, my kids love tuna and the bigger cans of tuna are so much better value than the little cans. Buy cheaper alternatives where you can and most importantly, go shopping with a shopping list!

5.  Ask a professional for help

I want to point out one area where I feel I can add real value… for those depending on their retirement savings for income, I’ve helped numerous people reduce their fees to save THOUSANDS of dollars each year… and the impact of fees on investment values will perhaps never be brought into sharper focus than right now. If you’re unsure or concerned about the fees you pay on your retirement savings and investments, then give me a call and let’s discuss the options. It can all be done online via video chat or over the phone!

There is absolutely no shame in asking for help and it could make a world of difference! And if you’re like me, you probably value independence when it comes to professional help.

In times like these, it’s best to be as proactive as possible. The reality is that if you get on top of these things now, you’ll actually have MORE money to spend on the important things in life.

Cheers,

Daniel

If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.

Daniel McGregor is the man behind Wealth Train and is a member of the Independent Financial Advisers Association of Australia. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.

Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advisers Australia AFSL 464629