Personal money management at all time lows

13 April 2009

Personal money management at all time lows

Queenslander’s personal money management is at all times lows, there are a number of things that can be done to improve this that will have a positive impact if started today.

Spending money is an issue we face daily as we spend money every day and the stress of living in the current climate of economic uncertainty and rising costs are fuelling our bad money habits.

Wealthyfrog Wealth Coach Richard Starr says “people believe that if they could just earn more money they could make ends meet or if they could get a pay rise they would catch up.”

”Invariably if we earn more, we spend more – bottom line is it doesn’t matter how much you earn, it’s what you do with what you earn that counts.” says Mr Starr.

Mr Starr’s research suggests that 40% of people spend all of their income. 50% spend more than they earn – eating into credit cards and home equity to support lifestyle and that less than 10% actively save and invest. Less than 3% actually have a well defined plan and purpose for their money.

“Most are unaware of the price tag for their current lifestyle and need to “get real” and “separate themselves” from bad money management. What’s required is an ongoing commitment to a personal money improvement project including self education, action and planning.” Mr Starr stated.

“If we don’t identify surplus cash flow, capture it and use it, we will never get ahead – if you can’t manage your personal money habits, you can’t manage investments” Mr Starr says, “and your investments are what will change your future if you start and nurture them today”.

Mr Starr suggests that there’s a number of things you can do to manage money better that are simple and effective.

“Start a money diary and take account of spending – yes every day! The results may surprise you. Identify the areas that are sucking up your cash flow and then address them.

Break down your lifestyle costs into day to day living, fixed bills, holidays and mortgages and there should be some surplus there – if not, you need to create some. You only have two choices – you either earn more or spend less. Once you have created the surplus income, what do you do with it? Some ideas are:

• Pay down non-deductible debt first
• Start a savings plan or put it into a mortgage offset account
• Start accumulating invested assets that will produce a return
• Seek professional advice about your long term planning
• Be deliberate and have a purpose
• Commit to ongoing education, sign up to newsletters that provide regular information

Make a “note to self” – this can be an enjoyable and rewarding process and stick with it, as Lao Tzu said "The journey of a thousand miles starts with a single step.".

Try this to get you started – get your free copy of 6 Steps to Financial Freedom. This e-book is available at www.6steps2financialfreedom.com.

The live event is being on 5 May 2009 at the Brisbane Worker’s Community Centre in Paddington, Brisbane. Register here...

Background information:
Wealthyfrog provides neutral, unbiased and independent expert financial coaching geared towards helping people achieve financial freedom for life. Wealthyfrog does not sell any investments and has no bias to any particular investment area or strategy.

For more information and Media Kit:
Claire Grlj - 0401 439 612
claire.grlj@wealthyfrog.com.au
www.wealthyfrog.com.au

“Disclaimer” Although every effort has been made to verify the accuracy of the information contained in this material, Wealthyfrog AFSL Pty Ltd, its officers, representatives, employees and agents (“Wealthyfrog”) disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information. Wealthyfrog has no associations with the financial product(s) or service(s) mentioned in this material. “General Advice Warning”. This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. Richard Starr is an authorised representative of Wealthyfrog AFSL Pty Ltd, Authorised Representative number 296825. Wealthyfrog AFSL Pty Ltd; AFSL 276895; ACN 101 092 228 www.wealthyfrog.com.au

Copyright © 2009 Wealthyfrog. All Rights Reserved

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If you're ready to take control of your finances no matter where you are now, please visit www.wealthyfrog.com.au to get your FREE e-book entitled “6 Steps to Financial freedom”.

“Other advice warning” Before acting on any of the information included in this article please seek professional financial advice. This article was re-produced with the permission of Wealthyfrog AFSL Pty Ltd; AFSL 276895; ACN 101 092 228. Richard Starr is an authorised representative of Wealthyfrog AFSL Pty Ltd, Authorised Representative number 296825. Copyright © 2009 Wealthyfrog. All Rights Reserved