If your expenses and your income don’t match up, you have two options: cut back on your spending, or figure out a way to earn more money.
Tagged With personal finance
Keeping on top of your budget is easier said than done - particularly when a big chunk of each pay cheque keeps going towards rent. But maybe you're spending more than you need to be. Here are the average rental prices in each state and territory in Australia. If you're paying heaps more, it might be time to think about moving into a new neighbourhood.
Your home is probably the most expensive thing you'll ever own, and that expense goes beyond the closing price. There's the cost of the house, but then there are other ongoing and upfront expenses that can catch you off guard. Especially if you're a first time buyer, it helps to know what you're getting into.
The last time I went grocery shopping, I bought the name-brand cheese instead of the store-brand cheese. The price differential between the $3 cheddar and the $6 cheddar used to feel impossibly vast; now it barely matters. It still registers, though, every time—and reminds me how much my life has changed, over the past ten years.
Do you feel trapped under your debt? You’re far from alone: according to the ABS, nearly 75% of Australian households held debt, with debt growth continuing to outpace that of incomes. Conquering your debt mountain can feel impossible at first, but with some planning, you can start taking action to become debt free.
When you’re deep in debt, you can find yourself feeling guilty, sad, or downright hopeless. Whether it’s a few hundred dollars or a few thousand, feeling like you’re not in control of your finances can weigh on you to the point of inaction. But spending your evenings face-down on the couch doesn’t help you get out of debt — it just seems to magnify the problem.
In 2009, I was 27 years old and a year into my first full-time job with benefits. I was working as an executive assistant at a think tank in Washington, DC, and had ended up in this job after spending the past five years telemarketing, temping, going to grad school to get a MFA in theatre, coming out of grad school no longer wanting to work in the theatre, and asking a professor whom I trusted how I could get a job that paid at least $US50,000 ($72,275) a year.
Earlier this week, I ran a report on all of my 2019 spending to date, divided by category. While I’m sure I’ll have a few more expenses before the year ends, I was still able to get a fairly accurate picture of where my money has gone this year—and whether I allocated my money in accordance with my values.
Writing a will is a lot to take on, mentally and emotionally. Not only does it make you confront your own mortality, but it also forces you to make big decisions about who you trust to handle your financial and personal matters after you’re gone. It’s a lot to take on, but it’s one of those to-dos that can afford you huge peace of mind once it’s done.
In last week’s post on How to Budget for Unexpected Expenses, I described sinking funds as “one of the best budgeting hacks ever,” which means it’s time for me to tell you how they work.