Make these 3 small financial changes now and future-you will be better off

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There’s little to no chance to learn about everyday finances, buying a home or saving money early in life.. In fact, over a third of young Kiwis respondents to a recent Commission for Financial Capability (CFFC) survey said they learn almost nothing about money at school. This means making the right financial decisions later in life can be difficult. 

Money Empire’s goal is to help everyday Kiwis get their heads around money, property and home loans. To give you get a head start, here are three things you can change right now that will make sure future-you is sorted financially

  • Free yourself from bad debt

There are two types of debt – good and bad. Good debt helps to build your wealth in the long term, while bad debt sucks your money away and makes saving difficult. 

Student and home loans usually fall in the good debt category, while credit cards, overdrafts, car loans and high interest payday loans are usually considered bad debt. Bad debt is expensive as it usually comes with high interest rates, strict repayment terms and penalties for late repayment. 

One of the best things you can do for your finances right now is to get rid of your bad debt for good. Write down all the bad debt you have, add it up and make a plan to pay it off as quickly as possible without causing yourself additional financial stress. Consolidating your debt into one simple loan could be a good idea to make this easier. 

  • Set goals and make plans

Without solid goals and a well-thought-out plan, it’s difficult to ever achieve anything when it comes to money. Take time to think about what you want to achieve with your money – do you want to buy a home? Go on a couple of holidays every year? Or make sure that you’re comfortable in retirement

Describe your goal in as much detail as you can, then research to find out exactly how much it’ll cost. Once you know how much cash you’ll need, set the date that you want to achieve your goal by. Next, divide that cost by the total number of paydays you’ve got until that date – the number that comes out the other end is the amount that you need to save each payday to make your goals happen. 

If you need a hand setting goals and making a plan, speak to one of our expert financial advisors here at Money Empire. 

  • Put money aside automatically every month

To make sure you don’t spend your savings, automate them. Set up an automatic payment so that cash goes out into a separate account as soon as your pay goes in. That way, you won’t even miss the money as you won’t see it in your account, and you’ll get used to living on a little less each month. Successful saving isn’t about making huge sacrifices and surviving on instant noodles – it’s about making small, smart changes to make managing your money easier. Need a hand clearing up your money situation and preparing for a better financial future? Get in touch with the team at Money Empire today to get started.

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