Most people have a pretty good idea of what they earn on a weekly basis yet very few have a detailed breakdown of where that money goes. There are always the regular bills like groceries, rent or mortgage payments, rates, electricity & gas, water, telephone & internet which most have got a pretty good handle on and generally these don’t cause us too much issue in the short term.
It’s the incidental things like coffees, lunches or smoker at work, alcohol, dining out and takeaway that often get away from us and before you know it are adding up to a substantial portion of the weekly net income.
The first thing you can do is establish a spending plan and then track where that money is going. At Fox Finance Group we have a dedicated app that can help you very quickly identify what your hard-earned cash is being spent on. Once you know exactly where it’s going you can make decisions about whether that expense needs to continue or whether you might be able to direct it to other areas that will help you get ahead, like reducing debt and then ultimately creating an investment that will grow over time to produce more income.
True financial freedom is achieved when the income you receive without having to work for it, exceeds your ideal cost of living. When that happens, you can go to work because you want to, not because you have to, and the good news is you don’t have to wait until you retire to make it happen!
If this has raised some questions for you, please speak with our Qualified Financial Planner, Quentin Carter, today about starting your journey to Financial Freedom.
Footnote: A common misconception is that you need a lot of money to go and see a Financial Planner, but this couldn’t be further from actual reality. What you do need is good old fashion common sense to go and see a Financial Planner, so you can have a lot of money. In your future! Everybody’s journey starts somewhere.
After graduating year 12, Dan began his banking and finance career at Westpac Banking Corporation in Brisbane in 1988. He worked for the bank for seven years, excelling in his career and working his way up to management.