Four ways to stick to your financial plan
by The Advantage
3 October 2019
When it comes to money, how do you make sure that your best laid plans don’t go to waste? We explore four simple ways to make sticking to your financial plans a little bit easier.
1. Ease into it
If you want to complete a marathon you don’t start training by running the full distance on your first try. Budgeting (your finances) is much the same. Set yourself smaller goals to begin with and work up from there. Use the momentum you get from quick wins to motivate you in your quest for financial security. Much like a runner would look at their training plan, take a moment each week to look at your savings and spendings, and identify where you can optimise your budget.
2. Set up direct transfers the day after payday
Automating your transfers is the easiest way to send your money where it needs to go without you having to think about it. Almost every online bank service has this option available – many even allow you to divide your pay across multiple savings accounts or debts. Once you have your amounts and destinations decided, simply set the date and frequency of the auto-transfers. This method takes a lot of the stress and manual labour effort out of managing your finances.
3. Find yourself a savings partner
If you’re in a long-term relationship, your partner can help you stay accountable and motivated to reach your savings goals. Keep in mind, you’ll both need to be on a similar page when it comes to goals and expectations. Having savings goals doesn’t mean you can’t have fun – make your plans over a glass of wine or head out to your favorite bar or restaurant. If you’re flying solo, find a friend to help keep you on track – kicking goals is more fun with a pal by your side.
4. Make adjustments for certain times of year
The beginning of the school year and Christmas time is when most people blow out their budgets. With extra spending on stationary, uniforms, school fees, gifts and travel, some times of year are more expensive than others. So, instead of being surprised by the unexpected jump in your spending, adjust your direct transfers to leave a little bit more in the spending account. Once these times have passed, go back to your regular savings plan and watch your wealth grow.
Putting plans into action
Everybody’s finances are different, but if you’re ready to start seeing your finances maximised, then you need to equip yourself with the right information to actualise your true financial potential. Contact the Advantage Consulting team today to learn about how a secure financial plan can help you reach your goals.
This is general advice and has been prepared without taking into account your particular situation or needs. You should consider whether it is appropriate for you before acting on it.