When it comes to money, younger Australians are fighting to find their way. According to a report by The Commonwealth Bank of Australia, 3 in 4 (or 73 percent) of younger Australians are struggling to prioritise their finances. Many younger consumers are also searching for the perfect balance between saving for their future, getting on the property ladder, and enjoying life experiences. When it comes to getting the most out of your money and acing the personal finance game, there are a few fundamentals to get right first, and it involves much more than meal planning to save a few dollars.
Stay In Control Of Your Finances By Staying Informed
One of the most revealing points in the CBA's research was that 70 percent of millennials want to be in control of their finances. As for financial stress relievers, 37 percent of them said knowing how much money is in their bank account helps. Another 48 percent said paying their bills on time also helps to lessen their financial tension levels.
The good news is that there is now a long list of tools to help you track your finances, including your spending habits, bill payment dates, and bank account balance. While many include a subscription cost, try to use tools and apps that are low cost or fee to minimise the fees you end up paying. For instance, your bank's app is normally free to use and helps you check your bank balance on the go. For budgeting throughout the month, there is PocketSmith and PocketBook which connect to your bank account and track both income and expenses.
Don't Just Focus On Saving, Redirect Them To Better Financial Outlets
Another fundamental of personal financial success is building up your savings. Without a financial cushion, you leave yourself vulnerable to falling prey to the debt circle and mounting interest charges. Safely, a survey by Finder shows that 3 in 10 Australians do not have enough savings to cover a month's worth of expenses. It is also not enough to work on creating savings every month but you should also find the ways those savings can make the most impact on your finances. For instance, you can redirect your unused vacation money to pay off your high-interest debts or build up an emergency fund.
Keep Up With Your Credit Score
It is no secret that your credit score is one of the most used pieces of personal financial data. It is used on your loan, mortgages, and credit applications-and even during employment checks. The first thing to do is familiarise yourself with how your credit score is calculated. Understanding the factors that affect your credit score is the best way to help yourself stay on track with a good credit score. For instance, applying for credit with several lenders can reduce your credit rating. Instead, take the time to research lenders and compare their offers before applying. Similarly, keeping your credit card utilisation below 30 percent can improve your credit score.
These are just a handful of ways you can maximise your finances. What makes the most impact is a consistent commitment to smart financial habits. While there is a long list of ways you can get the most out of your money, these 3 are a great place to start.