Managing money - get in the driver's seat


Darren Smith from our partner Financial Advice Matters explains how you can take control of your finances.

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Managing money can be like driving a car. It doesn’t matter what kind of car, if you have your hands on the steering wheel and keep your eyes looking forward with the occasional glance back in the mirror, you are more likely to get to your destination while making adjustments to conditions along the way. 

Looking after money and mind


Feeling in control of our finances is so important for our mental health and wellbeing. One of the most important areas is our ability to manage our short term and immediate bills. It can also be one of the biggest drivers of stress for many households as prices increase.  

We all have different approaches and attitudes towards money. This can be influenced by so many factors including our personal situation, mindset, life stage, access to technology, life experiences and those of our families and friends. 

Learning from each other


In our financial wellness education sessions, we are very grateful when people share some of the lessons passed down through the generations and the techniques they use to take control of their money. Some recent examples include: 

  • Spend it the same way your earned it – slowly. 

  • Spend less than you earn. 

  • If you don’t have it don’t spend it. 

  • Put away for a rainy day. 

  • Out of sight out of mind – take small regular amounts and put them aside.  

  • Never pay full price. 

These are are great to share as it can really assist and inspire others. 

Top tips


A few small adjustments can help you make the most of your money and support the lifestyle you enjoy. But changes in personal circumstances can lead to additional stress when it comes to working out whether you have enough money.

These include changes to your employment situation and the transition to retirement.

There is no single solution for everyone. Each of us is unique and have different priorities, but here are some general tips you can use to manage your finances and reduce your financial stress.

1. Take ownership and control

  • Review what is important to you in terms of lifestyle. 
  • Understand what money comes in and where it goes. 
  • Track it regularly.  
  • Understand areas where you can cut back, save or reduce spending. 
  • Understand where you can get discounts.
  • Set a budget you can live with and won’t resent.

2. Build up a safety buffer for the rainy day, or unexpected

3. Control your spending

  • Know your own habits and when you tend to overspend. 
  • Create your own speed bumps to slow things down. 
  • Always look for opportunities to save. 

4. Learn from the experience of others

  • Tap into the free resources that are available. 
  • Connect within your community and start a conversation. 

5. Don't be too proud to ask for help

  • There are free resources available online such as MoneySmart, National Seniors Money Hub and Financial Wellness Matters. 
  • Seek professional help, as required. 

Everyone wants to be in the driver’s seat when it comes to managing their finances. By implementing these simple steps, like the many individuals we work with, you too can make the shift from the back seat.  

Keep an eye out for future articles where we will explore more ways you can save. 

Disclaimer


This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither Alliance Wealth Pty Ltd not its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information. Corporate Authorised Representative No 1234989 of Alliance Wealth Pty Ltd AFSL 449221 ABN 93 161 647 007  
Credit Representative No 480095 of Centrepoint Lending Solutions Pty Ltd ACL 377711 ABN 40 100 947 804 | www.centrepointalliance.com.au/AW