September marks not only a changing of the seasons but also an opportunity for a fresh start when it comes to your relationship with money. It’s the ideal time to identify the small steps you can take to become more informed about your finances. Here are 10 to get you started – even if you only pick one to do today, taking action will help you feel more in control.
1. Log in to your super account
Taking care of future you is vital and when it comes to money, nurturing your superannuation is key. The earlier you start, the better off you’ll be. Most super funds have online portals where you can easily check your balance and see how your money is being invested. It’s worth finding your details so you can log in and check. Take a look at how your money is invested – generally it will be a balanced, growth or high-growth account – and consider what is best for your age. The younger you are, the more time you have to ride out potential market fluctuations.
2. Track your spending for a week
It can be a bit tedious but taking the time to dial into your spending habits can be life-changing. And you’ll start to notice where your big money drains are – whether that’s eating out or impulse shopping. Without even trying to cut back, commit to writing down every time money leaves your account for one week. You can use a spreadsheet or app but a pen and piece of paper will do just as well. At the end of the week, look back and reflect on what value you got out of each of those purchases.
3. Create a sustainable money plan
The main point of money is to secure enough of it to buy the things we want and need over our entire lifetime so what that looks like matters. Are you reading a book in a home that you own in retirement? Or sailing around the Bahamas? Envisioning your ideal future will help with setting good money goals. Grab some paper and set a timer for 10 minutes. Scribble down any words or pictures that represent your dream life and what your perfect day would look like, from dawn to dusk. See what comes up and use it as your North Star as you create the life you want.
4. Shop around on an insurance policy
Insurance premiums have been rising rapidly so if you haven’t reviewed your policies in a while, now’s the perfect time. Start by choosing one policy to review, such as car, home or health insurance. Obtain competing quotes using online comparison sites or calling competitors directly. Just make sure you’re comparing policies with similar features. And if you find a cheaper quote, see if your current insurer will match it. If not, consider switching.
5. Set some saving goals
Learning to set money goals is a big step on your financial journey. Once achieved, they can help build a sense of accomplishment. Whether you want to pay off a high-interest debt, set aside $1000 for an emergency fund or save for a home deposit, the three key steps are to name your objective, put a price tag on it and set a deadline. You can then work out how much you need to save regularly to meet your goal. If you don’t know where to start, why not use the rest of the year to set aside a certain amount each week for Christmas?
6. Stay safe online
With our financial lives becoming increasingly digitised, staying safe online is more essential than ever. One of the easiest things you can do is beef up your online security by choosing passwords or phrases that are hard to guess and consist of multiple words, numbers and symbols. Online password keepers can help remember these upgraded passwords for you. And turning on multi-factor authentication gives you an added level of security for your accounts.
7. Save money with this hack
How much you pay for anything is a function of just two things: the quantity you buy and the per-unit cost. It’s really that simple. So if you’re looking to save money on a purchase, ask yourself two questions: “Can I use less of it?” and “Can I pay a lower price?” Whether it’s shopping around for lower prices or trying to reduce your usage, this really is the ultimate money-saving hack to keep in mind. Write it in your notes app on your phone or stick it on the fridge and remember to ask the questions every time you shop.
8. Listen to a podcast about investing
Investing is a skill we’re generally not taught at school but it’s crucial if you want to make your money work for you – whether that’s through super or directly through shares or property. It’s important to learn about different asset classes, the trade-off between risk and return, and diversification. There are many podcasts out there, including Equity Mates Investing, but for beginners, I really like CommSec Invest: The Share Market Simplified, hosted by Jamila Rizvi.
9. Buy something second-hand
When it comes to lower prices, you can’t beat free. Online spaces like Gumtree, Facebook Marketplace and “pay it forward” or “buy, sell, swap” groups are a doorway to the wonderful world of the second-hand economy. Many people give things away for free on these sites but you can also find items at a significantly reduced price – it’s not just cars that depreciate rapidly in value once out of the store. Next time you’re looking to buy something, from furniture and décor to clothing, make it a habit to browse second-hand first – every saving counts!
10. Get in touch with your (finance) feelings
People think money is about maths but really it’s about behaviour. It’s what we do on a daily basis that really influences money outcomes. But what drives our actions? On a deep level, it’s emotions. Fear, for example, makes us turn away from something and not engage. If you aren’t sure what your stance is, search “feeling wheel” online for a resource that can help. Then ask yourself how the word “money” makes you feel. Answering that is the first step in reshaping your relationship with money.
Discover more
To help master your finances and gain confidence, CommBank personal finance expert Jess Irvine will bring you hints and tips through an exciting new financial fitness program.
Visit commbank.com.au/brighter to learn more.