7 Ways To Better Organise Your Finances From Someone Who’s Also Figuring It Out
I’m sure we can all agree that getting your finances in order is always a bit of a struggle. If you’re like me, you’d know that the very thought of your bank account will make you want to curl into a ball. But I think it’s time that I started better organising my finances. Not just for me. For you too. I’m just that good of a person.
As someone who doesn’t totally understand the concept of money, investments, or banking in general, saving isn’t the easiest thing to do. The way the world is currently going, I’d rather spend my money on things that will make me feel good in the short term instead of putting away money for my future. Unfortunately, that strategy does not appear to be sustainable.
Given that we are living in the middle of a cost of living crisis and inflation has entered a “calibration phase” (whatever that means), losing control over your money probably isn’t the best way to be living. The prospect of not having enough savings to face whatever is coming my way is a scary thought. So, I thought it was time that I actually got my shit together and sorted my finances out. Here’s what I learned…
1. Set A Realistic Goal
I mean, this one seems obvious but it’s an important first step. If you want any chance of sorting your financial shit out, you’re going to need to set a goal. For me, setting small, realistic saving goals was key. Big goals only set me up for failure because they always felt so out of reach. Instead, I started setting goals that had immediate deadlines like, “Save $50 a week.”
Having a goal allows you to see the point in saving and keeps you motivated to do it. Your goals could be to save X amount for a holiday, or spend less money a week on X, or save X amount by X date. This way you can actually see your money going towards something and have a reason to save each month. It’s setting an intention and a way to actually achieve it.
2. Make An Old School Budget Spreadsheet Or Use An App
I know, I know. Spreadsheets make you want to scream into your pillow but they can be the best way to get a hold of your finances. You get a snapshot of your budget, where your money is going and how much you’re spending per month. And they allow you to see how much you can contribute to a savings account.
Spreadsheets seemed really boring to me until I found a few TikToks that romanticised the idea of making one and I immediately became obsessed with them. I especially like the free templates you can use on Google Sheets and Excel.
Constantly updating a spreadsheet can become a bit tedious though and I struggle to keep up. Using a budgeting app on my phone makes things a lot easier and less time-consuming, however. Having an app was the best way to have the clearest picture of where your finances are at. For me, updating my budget through an app either fortnightly or monthly worked better for me because I liked being able to see how well I stuck to my saving goal and then set a new goal for the upcoming month. Some apps do cost money but if using it works for you, it’s a good investment.
3. Consolidate Your Debts With A Personal Loan
Credit cards and buy now pay later payment methods add up over the long run and can create too much interest. In fact, a lot of young people are struggling with buy now pay later debts as late fees reportedly have interest rates of up to 50 percent.
For some people, debt consolidation into one personal loan is a good way to stay on top of your repayments, reduce fees and interest, and make things more manageable. This is because you’d only be making one payment in a month instead of multiple ones. If you’re looking for more information about how to get a personal loan, here’s a handy guide.
According to Money Smart, debt consolidation may be a good idea if you can actually get a lower interest rate on the consolidated loan as compared to the rate of your current debts. They also say that it’s a good idea to make sure that the new loan is cheaper than your existing debts.
There are a lot of things you should consider before consolidating any of your debts as it may not be the best course of action for your circumstances. Always get professional financial advice before making any decision involving debt consolidation or loans.
4. Get Finerate (Financially Literate)
Okay, so maybe I made this word up but I happen to think getting “finerate” is one of the best ways you can empower yourself to stay in control of your finances. Becoming financially literate means you’re able to expand your understanding of money and make the best financial decisions for yourself.
Podcasts like She’s On The Money and How To Money have helped me gain a broader understanding of financial concepts I was too scared to ask people about. I’m always confused about investing and creating a portfolio but youth-focused companies like Sharesies break down complex terms so that the stock market world doesn’t feel inaccessible to someone in their 20s.
5. Focus On Your Super
I never thought much about my super because it was just something that happened in the background and I wouldn’t need it until much later in life. But then I realised that it’s super (I’m sorry) important for young people to get actively involved in their superannuation planning.
Places like Super-Rewards are a great way to actually grow your superannuation without doing too much work – and by online shopping, which we all love. When you use and shop online through Super-Rewards, you can actually add to your super balance by getting cash back into your account.
6. Be Candid With Your Friends
One of the best things I’ve been able to do in regards to sorting out my finances is by talking to my friends about it. We talk about how much rent we pay, how much we spend on groceries, how much of our pay goes into our savings account, and how we budget for all of this. (We talk about other things too, I promise.) This may seem like an awkward conversation to have at first, but being transparent is an easy way to get good saving ideas.
Talking about your finances and saving goals with your friends keeps you accountable. I’ve also found that my friends and I will do budget-friendly activities together, like making dinners at home for each other, because we’re open about where we are financially.
With the rise in the cost of living, everyone is struggling so being open with my friends about money has been a great way to feel less alone. We’re all trying to do our best financially, and there’s a lot of comfort in that.
7. Rent Out Your Extra Space
Stay with me on this one. If you have a spare room you don’t use or have a parking space or garage that just sits there, you can actually rent it out.
Services like Spacer are like Airbnb but for your extra storage space and garages. You can list sheds, carports, driveways, and even yards on Spacer to rent out to other people looking to use the space. It’s a pretty simple way to get some extra cash in your pocket
Editor’s note: This piece is an unbiased editorial piece, but we do have commercial partnerships with Savvy.
Image credits: Unsplash – Fausto Sandoval