There are several ways by which to improve one’s finances said Macquarie. First, you need to track your spending. How do you spend your money every month? Macquarie offers a pending tracker app called ASIC’s MoneySmart’s TrackMySPEND. It’s a free app. You use it to record the following types of expenses: the weekly household budget, payments for special events like celebrations, work an travel expenses, and other cash expenses that you find hard to record like coffees, lunches.
You maximize the value of your cash and optimizing its use or function when you begin consolidating your financial situation. Following time-tested principles from individuals who have attained success in enhancing their financial security allows you prepare for your future.
TrackMySPEND also allows you to: suggest a spending limit, increase savings by separating ‘needs’ and ‘wants,’ track your daily personal expenses, view your expense history, and add tags to categorize costs. The app can send text messages to your phone as expense reminders.
Everyone wants to get the most out of the money in his or her possession. Personal finance is the quality of a person’s cash position relative to personal financial goals as defined by income versus spending. Attaining a sound state of financial stability is based on the value placed on savings and the initiative to spend wisely income from various streams. Setting aside cash for any emergency and a certain amount for investment from cash savings, assures the future of a person.
When income flows in, set aside a certain amount for savings first, after which start dealing with other expenses. Most people, by habit or necessity allow spending on bills and whatever is left is relegated to some form of savings. As a result financial security becomes an elusive goal.. Many have found the principle ‘pay yourself first’ as the road to wealth instead of prioritizing personal spending.
Develop the habit of controlling your daily, weekly and monthly expenses and at the same time avoid buying out of impulse even if the item that you want to buy is necessary for your physical, social and financial well-being. Keep the money for a time before spending. Develop the attitude of maximizing your savings out of every purchase of any product by looking at the discount and bargain offers, and by comparing the advantages between two or more similar products or items and their prices in different venues.
Once you have attained a sufficient amount of cash from your savings, you have what is known as a surplus or money that is way above and beyond your standard daily spending. You can develop a sustained personal savings program and sustain it over the years if you limit your spending and prioritize savings over personal expenses. This can strengthen your financial capability and yield fruitful results towards a secure future.
By limiting your personal expenses and disciplining yourself to save, you create a surplus that can be deposited savings. Once savings accumulates, you can invest a part of it in a sound financial project. Always check your surplus account to see if it allows you to plan for additional expenditures. Otherwise, the additional savings can be added to the surplus account and used for investing in sound commercial or financial projects in the future.