Owning a home has been part of the Australian Dream for decades. It was a sign of attaining a certain level of wealth, and the stability that comes with it. And for many, it was a great investment.
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Balancing your financial goals, wants and needs isn't easy. There always seems to be something else popping up, keeping you from setting aside the money you intended to save at the beginning of the month. If you're trying to reach a money milestone - like saving up $10,000, for instance - here are some strategies that can help.
There’s a contingent of personal finance obsessives out there who’ve branded themselves as FI/RE, which is short for Financial Independence and Early Retirement. They’ve cut their day-to-day living expenses to the bone, while earning and investing aggressively, all with the intent of retiring well before the average retirement age (which is 55.3 in Australia). For them, saving is more enjoyable and fulfilling than a big house, dinners out and lavish holidays.
If there’s one truism when it comes to your money, it’d be not to let your emotions get the best of you: You don’t want to sell when the market’s tanking, splurge on something you can’t afford when you’re in a bad mood, or continually give money to a loved one with no strings attached.
But giving into your emotions can actually be a boon to your finances in the right circumstances. Here’s why.
This past week, during a particularly stressful day, I did what I always do when I want to complain to someone I know will listen: I called my dad. I’m lucky that our relationship is such that I can vent about work or daily living in New York City, and he’ll listen attentively and offer fatherly pearls of wisdom or tales of his time in his 20s and how he figured it all out, without (too much) judgement.
Facebook’s stock dropped 19 per cent yesterday after the company told investors user growth had slowed in the wake of the Cambridge Analytica breach, one of many scandals currently plaguing the tech giant (it missed revenue estimates as well).
It can feel daunting to start from zero when you’re a newbie saver or investor. You have financial professionals advising you to put away 20 per cent of your income and save double your salary by the time you’re 35, while you’re struggling to pay rent. Saving anything at all can seem like a pipe dream.
We’ve talked about taking spending freezes, allowing ourselves to buy nice things every now and then, and delineating our money goals, all to help get us in the right financial mindset to save money. Another strategy I like is overcoming the immediate-gratification urge by picking something to look forward to.