5 Money Essentials

Money management can be overwhelming, but it doesn't have to be.  As a busy mum, it's also often difficult to know what to do first.  There are SO many things on your list!  

As I often say to my 7 year old daughter - "life is about balance".  By that I mean, balancing all the 'must-do' tasks, with the 'would-be-nice-to-do tasks'.  Money is a 'must-do' task - especially the 5 Essentials that I go through below.

By focusing on these five money essentials, you'll be well on your way to achieving your financial goals, and once done, you can focus on more wealth building (more on that in another post):

1. Emergency fund: This is a savings account that you can use to cover unexpected expenses, such as a medical emergency or car repair. It's important to have at least six to twelve months of living expenses set aside in case of an emergency.
2. Pay off debt with the highest interest rate first: High-interest debt, such as credit card debt, can quickly spiral out of control. By paying off the debt with the highest interest rate first, you'll save money on interest charges in the long run.
3. Increase your superannuation: retirement may seem like a long way away, but you do need to start planning for it now.  Compounding returns is one of the best parts about money, and the more time you have to compound, the bigger the nest egg will be for when you need it. By increasing your contributions, either through salary sacrificing or making additional contributions after tax, you'll be able to build your nest egg faster.
4. Get into the habit of saving: Saving money can be difficult, but it's essential if you want to achieve your financial goals. One way to make it easier is to automate your savings. Set up a direct deposit into a savings account, so you won't have to think about it.
5. Estate Planning: An estate plan is a set of legal documents that will help ensure that your assets are distributed according to your wishes after you pass away. This includes a Will, an Enduring Power of Attorney, and Advance Health Directive. It's important to have these documents in place to ensure that your loved ones are taken care of.  Once you set these up, provided nothing significant changes in your life, you should only need to review things every few years.

By focusing on these five money essentials, you'll be well on your way to achieving your financial goals. Remember, it's never too late to start making changes, so don't hesitate to take control of your finances today.