While the old adage ‘Money can’t buy you happiness’ is true, money can be a useful tool to help you achieve your goals - whether they’re financial, lifestyle or personal. Believe it or not, your relationship with money can have a significant impact on how you manage money, how much money you can make and your ability to save.
Following on from Valentine’s Day, why not invest some time in you, starting with your connection with those dollar bills.
Change the way you think about money
Before you can change the way you think about money, start by taking stock of your initial thoughts. Do you think money seems hard, tough to come by and just not destined for you? These kinds of thoughts will do very little for your confidence in making decisions about money.
Consider shifting your thoughts to be more positive. Try asking yourself; How do I want to feel about money? How do I want to spend money? What do I enjoy spending money on? By shifting those negative connotations you will realise that you can think about money any way you like. It is just a piece of paper - it’s up to you how much power you give it.
Set money goals
Setting money goals is a great way to keep you thinking positively about money and motivated to use your money wisely. The key to successfully achieving a goal is to start small, and the same applies to money goals. Consider the following;
- Setting up a savings account and making a contribution every month (as much or as little as you can afford)
- Review your monthly spending and make some cut backs on non-essentials to help you save. (eg, making coffee in the morning instead of spending $5 at your local cafe).
- Explore ways to bring in extra income each month
Why not try our Saving’s Calculator to discover how much you could save with a regular savings plan.
Review past decisions and learn from them
We’ve all made mistakes when it comes to money - whether it’s buying a pair of shoes you couldn’t afford, a new tool that wiped out your credit card or making a bad investment decision. The key to turning these experiences around is learning from them and taking away a positive lesson. Nothing will be gained by obsessing over your bad decision and regret.
Pay attention to your money
This tip is less about counting every penny, but more about becoming more accountable with your money and what you’re spending it on. Whether your pay cheque comes in weekly, fortnightly or monthly, it’s so easy to frivolously spend and then wonder why your account is empty. There’s always the temptation to bury your head in the sand with your spending habits, but doing this won’t do your relationship with money or your financial goals any favours. Consider reviewing your bank statements and analysing where your money is going. Remember, money is just a tool, we give it the power on what it achieves. Be intentional with your spending.
Our Budget Planner will help you work out your everyday expenses, where your money is going and if you have the potential to put any extra money away to meet your savings goals sooner.
Comparing your financial situation to others can be extremely detrimental to how you feel about money. It’s important to remember that everyone’s circumstances are different and you never truly know the full story of someone’s finances. You should also consider a difference in priorities between you and others. While your friends might have short-term satisfaction as a priority (i.e. shopping sprees, holidays, cars), consider that your priorities are long-term. Stay focused on your goals.
Need a reminder of your goal to stay motivated? Try our Savings Goal feature in Regional Australia Bank’s Your Banking app and watch your savings grow.
If owning your own home is a goal for you, talk to one of our specialists, visit your local branch or call us on 132 067 to find out about our home loan options and how we can help.