Knowing exactly where our money is going and keeping it organised can not only hugely reduce stress, but helps us live with a sense of freedom and stability.
But how do we get there when we have a million other things to juggle?
While it can feel like such a heavy burden, if we don’t stay on top of our money and make financial plans we can stick to, we can create a huge and unwanted mental load for ourselves.
So, today I’m sharing some practical strategies that can help you manage your finances without letting them control you. I’ll take you through some simple exercises that will help you refocus your spending and help shift your mindset.
We’ll also discuss why financial balance really matters and how it touches every part of our lives - from work to family to our mental wellbeing.
Achieving financial balance isn't about having millions in the bank or never spending on anything fun. It’s about feeling empowered by your financial choices and ensuring that your spending aligns with your values and goals.
Remember, you don't need to conquer it all overnight. Small changes, like just starting to put away money for savings, can be a great start.
So, join me today and let’s take some actionable steps to ensure your money is supporting the life you want to live.
But the truth is when we manage our money, well, it reduces stress and helps us live with a sense of freedom and stability. So today I'm [00:01:00] sharing some simple, practical strategies that can help you manage your finances without letting them control you.
Why financial balance matters money is one of those areas that touches every part of our lives, from work to family, to even our mental wellbeing. And when we don't feel in control of our finances, it can lead to anxiety and a sense of overwhelm. But here's the thing. Achieving financial balance isn't about having millions in the bank or never spending on anything fun.
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Track your spending. I recommend you spend a whole month tracking everything you spend. Every dollar. Grab a diary or create a spreadsheet. Again, whichever method is going to be the easiest for you. And just note down everything you spend. It's important that you do this over a month because then you'll see any regular payments that have been set up also.
Don't judge yourself as you do this, just write it down and move on. At the end of the month, take some time to look over your spend. Is what you're spending what you expected? Are there any surprises in your notes? For me, no matter what, I'm always surprised about how much I spend on groceries. Next, have a look where your money is flowing.
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And then wants, this is just as important as needs and savings. What are your weekly or annual wants? Now this can all feel a bit tedious, but knowing and being in control of understanding what you're spending on essentials, extras, and how much you're dedicating to future goals is how you start to feel confident about your money.
And that's the end goal. So now you've looked at your financial flow. The next step, step two is to create a spending plan that aligns with your goals. This means instead of just living, you're really taking charge of your spending. I like to avoid calling it a budget. So for me, it's a spending plan.
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A really common and well proven guideline is the 50 20 rule. This means allocating 50 percent of your income to needs like rent, groceries, and utilities, 30 percent to wants like dining out or entertainment, and 20 percent to savings and debt repayment. It's a good rule of thumb to start off with. If this is your first go at really planning your money, you are in control of how you need to break up your income next, and I highly recommend this automate your savings decide the categories you would like to achieve savings for, and then set up a bank account for each category. Most savings institutions will then allow you [00:05:00] to rename your accounts to show a title that you would like, for example, savings for a holiday.
Next, set up your automatic transfer from your main account to your savings account each payday. That way, there is nothing for you to do each payday. You won't even need to think about it, and your savings are automated and they will grow in the background. Don't forget about bills it's well worth having a look at everything you've spent on bills over the last year. Capture regular payments and things that may be an annual cost like car registration or rates. Add it up and then work out how much you need to put aside each pay to cover your bills. Make sure one of your savings accounts is called bills and then automate payment into this account as well.
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You can control it with a solid plan. Two popular methods to tackle debt are the snowball and avalanche methods. Here's how they work. The snowball method focuses on paying off the smallest debts first, giving you some really quick wins. As you pay off each small debt, you gain momentum and motivation to keep going.
The avalanche method. This one's a little different. And instead of starting with the small debts, you focus on paying off debts with the highest interest rates. First, this will save you money in the long run. both strategies work and are well proven. It's just about choosing the one that feels right for you. And if your debt has a high interest rate, look at your options. It can be a bit fiddly and time consuming to organize a lower interest loan, but your time investment will translate to results. Step four, align spending with your values
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For example, are you spending on things that truly bring you joy or other areas where you're wasting money on things that don't matter? Make intentional choices. This is not about cutting everything out. It's about making sure your spending plan reflects what's truly important to you. You'll feel more in control when your money is aligned with your values.
And the result of this is you won't feel any guilt when you do spend. Step five, build an emergency fund I know that I've said this a few times, but every single person needs to have an emergency fund. This is your safety net. Money set aside for those unexpected things that life can throw at us.
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For me, I have my emergency fund in a completely separate bank, so I can't easily see it. Step six, keep checking in with your finances like any area of balance, staying on top of your finances requires regular check ins. This can be as simple as reviewing your spending plan, checking in on your savings and making sure your spending is aligned with your goals every few months.
Financial balance is the key to life balance. Managing your money is about creating a sense of freedom and reducing stress. Financial balance helps support your overall life. And remember, you don't need to do it all overnight. Small changes, just starting to put away money for savings, can be a great start.
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If you're ready to dive deeper into organizing yourself in any form, head over to Balance at Hand for more tips, resources and support. And don't forget to share your progress with me. I love hearing about how these strategies are helping everyone live their best balanced life until next time, take care of yourself, your finances, and live your best balanced life. [00:10:00]
