5 Money Wise Rules to Abide by in 2021

People are always on the hunt for ways to soothe their financial pains and make their lives easier. But even if you are a big earner, your finances will always be at risk if you never consolidate them with the skills needed to effectively manage money.

Developing financial management skills will set you up with the tools you need to live your best life. With that in mind, here are 5 key money wise rules to make your life easier in 2021 and beyond:

1. Make the Most of Tax Concessions

Prioritise researching any and all tax concessions which apply to your personal circumstances. Accountants are frequently called upon by clients to help them navigate their tax environment, including meeting all obligations and leveraging any concessions, offsets or rebates. Following the events of the last year, many considerations are available for both individuals and organisations. The ATO’s website, your accountant or wealth advisor are all excellent resources to help you learn which concessions you can take advantage of.

2. Automate Financial Processes as Much as Possible

Automating your financial obligations and payments as much as you possibly can is essential to reducing financial strain. Leaving these tasks on a manual setting means you are always depending on yourself to remember to make payments on time. Sooner or later, it’s likely you will incur extra fees for late payments. By making the big decisions up front, you can commit to a researched and money wise option that fits your circumstances.

3. Review Your Spending Every Month

Regular evaluation of your progress and purchase decisions is essential to the financially conscientious individual. Use this information to cut back on the expenses that aren’t as important to you. By consistently reviewing your spending and making changes accordingly, you can continue to adapt to changing financial environments while maintaining clear oversight of your priorities and what they cost.

4. Live Below Your Means

You may need to face some hard truths and admit what you can and can’t afford. If you live above or even within your means, you leave yourself with no possibility of saving. Regardless of your income level, the only way to improve your financial reserves is to plan for the future. Living below your means is the key to unlock this future.

5. Make the Right Purchase Decisions

Continuing along the theme of a sensible lifestyle, making the right purchase decisions – especially the big ones – is a must. Your house and your vehicle are likely to be the two most expensive assets you own. There’s something in human nature that longs to have the best, but remember, everything needs to be done within reason. Although the most expensive may be the most glamorous and enticing, overreaching means you will make your finances far more challenging to manage. Every dollar you don’t spend here is another that can be put somewhere else, perhaps into investment or retirement savings.

Sadly, there’s no ‘one size fits all’ solution to the complicated and convoluted challenge that is financial management. Take general money wise rules and apply them to your personal situation. With this approach, you can continue to improve upon what you have.

If you have any questions about financial management and being money wise, get in touch with the team from Provide Wealth.