Money Makeover Challenge!
July 16th, 2019
Ready to ruffle some feathers? Your own that is.
Plansure's One Week Money Makeover is here! Are you up for the challenge?
We want to help you makeover your financial habits. We have designed this as a one week challenge but if time is an issue or if you feel you need to take smaller steps, you could try and complete the challenge within a month or an item per week.
Monday: Establish your current financial position and create a realistic budget.
This is probably the biggest challenge of the week. Once you're done you'll feel SO GOOD. You may not like what you see but the important thing is to know where you stand before you do anything else. Give yourself time to sit down and really get this right.
Log into all of your accounts and work out where you stand. What have you saved versus what do you owe.
Then, create/update/amend your budget.
The most important part of this step is to be honest. Check your online transactions to record your spending habits, look up your past paid bills, credit card statements, Uber Eats receipts... you have to be honest with yourself to ensure you can succeed. ASIC's Moneysmart Budget Planner is a great free tool.
Tuesday: Choose one specific savings goal and create a labeled account for it.
Most banks allow you to set up a fee-free savings account online. Make sure you give it a specific name ("I want to save $5,000", "Holiday to Spain", "New bathroom", "Wedding reception") etc. That way when you log into your banking you will be reminded of your goal and see how close you are to achieving it.
Wednesday: Set up an automatic transfer
Arrange a regular savings transfer to your new savings account (even if it's just $10 a week!). Be realistic - save what you can afford to ongoing. If you start small, you are more likely to stick to your plan.
Thursday: The best things in life are free.
Challenge your self to a weekend of no spending! Plan a weekend of free activities and see what you can do to enjoy your free time without spending on meals, tickets, shopping etc, etc.
Go for a walk, cook a meal using only what you have in your kitchen, re-organise your garden, go to the art gallery and have a picnic lunch, check out your local council website for free events or activities, rearrange your wardrobe, have a family games night, take the kids camping in the back yard, go for a bike ride, make something in the shed using scrap timber, sell things you don't need, organise a soccer game in the park with friends.... the options are HUGE!
Friday: CUT. IT. OUT.
Ok, this is a tricky one - go over last month's bank statements and choose 5 things you can cut out of your budget for next month (or the rest of the year!).
Saturday: Commit to free.
Commit to one new regular activity that doesn't cost anything (think, a weekly walk with a friend, watching a new TED Talk, reading a book from the library, meditation, volunteering).
Sunday: CUT. IT. OUT.
Today is the final day of our challenge and we're finishing with another cut.
Say "see ya" to the challenge by culling one of your subscription services (even if it's just for a month!). Do you really need Netflix/Stan/Foxtel/Spotify/Kayo/Amazon/You Tube Premium etc. at the same time? Remember there are plenty of great shows and movies available on free-to-air catch up (Try SBS and ABC for fantastic movies and docos!).
Disclaimer:
This advice is general advice only and has been prepared without taking account of your objectives, financial situation or needs; and because of that you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.
