Chris Childs

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Stuck for pennies between paychecks?

They say that money can’t buy happiness. Yet there’s little doubt that not having money isn’t the path to happiness either.

Running out of funds can be enormously stressful. For instance, have you ever:
  • Sweated in line at the supermarket, hoping that your credit card will cover the total?
  • Driven around with your fuel tank on ‘empty’, praying that your car will make it until you get paid again?
  • Tossed and turned at night, unable to see a way out of debt?
These are just a few examples of how a money deficit can impact our lives. We see hundreds of clients each year who have been through these experiences, and the great news is that they can come out the other side…Which means you can learn how to master your finances, too!But firstly, to make our paycheck go further we must understand why it isn’t stretching far enough right now.Here are three main ways that many of us regularly overspend. (Usually, without even knowing!)
  1. We lose sight of the little things. The small ways we spend our money really do add up. For example, buying two coffees a week (a fairly humble estimate by many standards) accumulates to a hefty bill of $500 a year! All the extra lattes, impulse buys and unplanned purchases can drain your paycheck in no time. Try going for one paycheck without these incidental purchases and notice the difference.
  1. We buy items that don’t really give us value. How often do we spend money on big ticket items that merely collect dust in the garage? Sure, some purchases genuinely bring joy but I’m willing to bet that others don’t. Also, remember that any money spent on ‘extra’ items is technically an expense in your budget. We often don’t place a spending limit within our budget for these indulgences but they need to be accounted for.
  1. We don’t question our ‘essential’ bills. With direct debits and automated payment plans, it’s easy to overlook the expenses that are whisked away from our bank account each month. While you may have initially investigated the best price for these essential bills, there’s a good chance that you may be able to find or negotiate a better rate down the track. A great example of this is insurance; your premiums may be sneaking up, so take a little time to check you’re getting the best offer, or switch! It’s worth the bit of effort.
These three principles all fit under the overarching pillar of great budgeting. Knowing how much money is going in against how much is going out (and where) is the real cornerstone of ensuring that your paycheck covers all expenses. And if you’re really interested in improving your financial health, it’s absolutely imperative to learn how to budget well.Thankfully, we have a convenient Cash Management System that shows you how to budget like an expert. Connect with our Wealth Coaches to get started today!