5 Steps to Improve Your Finances When You’re Clueless About Money

So many times people throw their hands in the air when it comes to money – where does it go, and how does it slip through your fingers? What many people don’t know is that their problems with money need to be unlearned before they can get ahead. So even if you’re clueless about money, here are five steps that will help you understand what you need to unlearn about money to improve your finances.

Don’t fall victim to desire.

Do you spend on items that end up in the back of the cupboard in six months? Do you buy those things on credit? This desire for expensive, fancy, or superficial items may be holding you back financially. Challenge yourself to look but don’t buy these items for six months and see how much you have saved. Once you start to see results, it becomes easier to say “no” to things you desire, and increasing your savings and investments becomes just as rewarding.

Don’t put it off.

Have you ever said “later’ when it comes to doing something about money? So often we put off doing something to put ourselves in a better position. Whether it’s to add more to super, save 10 per cent of your salary, or put together a budget. The thing about time is it does not stop. The sooner you start, the better it will be.

Don’t believe everything you know as truth.

Did you grow with up parents telling you there was never enough? Did you believe that earning money was hard? Think about what beliefs you grew up with around money… These beliefs may be holding you back. So question what you know, research and make sure you’re simply not following the beliefs of others.

Set goals, and think ahead.

So many of us don’t hit goals, because we don’t even have them. Do you focus on today, next week and next month, instead of next year, 5 and 10? The broader your focus is, the more likely you are to achieve those big picture goals.

Actually take action.

Do you know how to do a budget? Or what you will need to retire? So often people don’t know what action to take, so they don’t take any. If you want to know if you can do yourself, go to the ASIC money smart website and use their calculators. If you need help, it’s time to find the right financial planner for you.