Address:
3/374 Pennant Hills Road, Pennant Hills NSW 2120
Call Us Today:
(02) 9980 5892

Improving Your Money Management Strategies Is As Easy As 1, 2, 3!

The financial climate of the future is uncertain, but it’s one that you need to be prepared to face. Ensuring that you are financially in a better position to face this uncertainty can be done by your own means, or by working with an advisor to help manage your money.

A handy tip for ensuring that you are prepared for any eventuality is that you may be able to establish an emergency savings account with your bank. By depositing some money regularly into a high-interest savings account you can prepare for any eventuality.

You could implement the 50/20/30 budget rule into your daily life, whereby 50% of what you earn is spent on needs (ie. rent, bills, groceries, car/transport), 30% is spent on wants (ie. clothes, games, etc) and 20% to be saved or put towards debt repayment. In this case, you could dedicate some of the 20% towards your “for emergencies” fund to assist you with unexpected expenses.

If you find yourself in a situation where your emergency funds just won’t stretch to cover the amount you require, you can also apply for a “payday loan”, but this should be done with caution. Often they are riddled with terms and conditions that may make it difficult to pay back, and you should investigate and compare payday loans to find what might be suitable for you. You may also need to consider whether it is financially feasible for you to pay back the amount you require.

If you are looking for more money management tips, you can speak with us for advice on your budget and your tax planning for the future. It’s never too early to start a conversation – and in some instances, the sooner you do, the better!

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

Testimonial

What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier