Finance expert Louisa Sanghera from Zippy Financial provides some handy tips to control your cash flow…
Money comes and money all too quickly goes. But if you’re not keeping track of the flow of your bank account, you’re making a pretty simple financial mistake: no cash-flow control. And it’s something that will end up costing you dearly.
With New Year around the corner, there’s no better time to organise your family’s financial plan and to manage those expenses. Bygetting on top of the boring day-to-day transactions that dictate your bank balance, you will find that your monthly budget will start to run itself, leaving you more time and money to spend on life’s fun stuff.
Save money – by not slipping into the red, you will save on bank charges and avoid having to pay high interest rates. Most utility companies also offer prompt-payment discounts.
Save time – automatic payments and direct debits mean you will spend less time online banking or shuffling piles of paper bills each month.
Stop worrying – by knowing down to the last cent how much you have to spend each month, it will help you match your spending to your budget, leading to fewer sleepless nights stressing about the state of your finances.
Start saving a financial roadmap will help you navigate a long-term savings plan.
There are five easy stages to managing your cash flow:
- Start your plan – set aside a quiet half-hour, grab a pen and paper and write down what you have coming in every month, and what you need to pay out.
- Look ahead – plan for the whole of 2018. Include every essential utility and bill: rent/mortgage, water and electricity, rates, insurance, school fees, car costs etc.
- Bank clever – set up different bank accounts: rent/mortgage, bills, savings and your everyday living expenses. After you are paid each month, move your funds into your different accounts and leave the money there.
- Direct debits – ensure all your essential bills are paid using automatic payments. Big bills, such as insurance, can be spread throughout the year, to ease the pain. By automatically moving your money to your different accounts at the start of the month, you will never have to worry about missing payments again.
- Put it on the house – if you have personal loans, talk to your trusted mortgage adviser about consolidating them onto your home loan. Bank mortgage rates are at historic lows, and are likely to remain that way for the foreseeable future. Not only will you streamline your monthly cash?flow but you will save money too.
By clearing the decks of all your essential bills each month, you will know exactly what you have to spend on day-to-day living expenses, the small luxuries that make the daily grind a little less grinding, and that occasional mall-splurge.
A fear of the financial future is really just a fear of the unknown. By defining your budget and getting to grips with your cash flow, you’ll be able to look forward to a brighter and more prosperous 2018.
Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Financial.
She has gained more than 30 years in the Banking and Finance Industry, and since founding Zippy Financial, has become a multi award nominated expert in the field of finance featuring regularly in industry press and speaking at finance & investment seminars across the country.
Phone: 1300 855 022