We don’t like to talk about money! We put on our best faces and pretend everything is okay! But inside just below the surface we are hurting, our finances are a mess, but how do you say ‘no’ when you have a budget to stick to?
There is no one size fits all approach when it comes to teaching our children about money. The strategies we use to teach our children need to be age appropriate and very, very relevant to the issues they face in everyday life. The purpose of this series of articles is to pass on practical skills and activities that will assist parents to take a proactive role in equipping their children with the skills on how to manage money.
I love this image because it we all know people whose consistently waste money on stuff they don’t need and then cry poor when it comes to paying for the things they really do need.
As a financial advisor, clients are always thinking of ways to save money and pay off debt. One of the most common questions I get asked are, “Should we consider fixing the interest rates on our home loan?”
At Grandma’s Jars we are passionate about helping people take control of their personal finances and get out of debt. We have seen first hand the impact that debt has on people lives when it gets out of hand. Debt causes financial stress and is a burden that robs us off tomorrow’s cash flow making it harder to save and get ahead financially.
I’ll admit it, as a financial adviser and budget coach I do tend to manage my finances on the conservative side. I don’t mind taking risks but I take calculated risks. By calculated I mean that when faced with a major financial decision I objectively considered what could go wrong, what I would lose if things did go wrong and weigh this up against what I believe I have to gain.
How much have you spent this week? Do you know? Okay, so have a think back, what have you spent money on today? How about this week? How much has it added up to? Do you know? If you are like most people, you haven’t really thought about how much you have spent over the last few days. Your first thought is probably – not much, I haven’t really been anywhere to spend money. But what about the bought lunches, morning coffees, take away and parking?
Not too many people consciously think about their style of money management. For most people, day to day “money management” just happens without any real purpose or planning. Unfortunately, it is a proven fact that in the absence of ‘purpose’, people will almost always drift towards the negative mindsets and habits held by mainstream society. This is particularly true of the way we manage money and our finances…
A 2012 Study conducted by fund manager Challenger identified that the average Australian is retiring with just $60,000 in superannuation. Now many of the people retiring today have not had the lifelong benefit of employer superannuation which only became compulsory in 1992, however $60,000 is still a depressingly low figure. While most of us will have the benefit of compulsory employer contributions to help bolster our retirement savings you can be absolutely certain that employer contributions alone will not be enough to give you a comfortable retirement.
How to Budget Principle #5 In Grandma’s days, budgeting was always a very tangible task. Either the money was in her jars or wallet to spend or it wasn’t. It was always very clear if you had the money to cover an expense. In today’s world of virtual jars and online banking it is easy for there to be a disconnect between what our budget says we have to spend and what our bank account says we really have available.
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