Money Matters: Make it count!

 I'm 29 years old and I am going to admit to you something very embarrassing. I had never in my life done a budget before. EVER. Until yesterday, I had no idea how to even start. I knew it was something important and that I should probably do it... but I never made time for it. That's why, when my sister in law asked if I needed help doing a monthly budget, I jumped on the opportunity. I am so lucky to have her! She is actually a professional money manager and works for a bank, she does the budget for her family once a month, so she had lots of practice. 

We sat down together and went through my expenses bit by bit and put them into a huge excel sheet, which then tallies up how much I am over spending by each month, on average. I was shocked at how much money I spend on food! Honestly. The majority of my budget that wasn't going on rent and bills went on groceries and take out! It really put things in perspective for me. I could be saving so much more money if only I got off my lazy bum and cooked more meals at home instead of ordering in! This got me thinking, what are other ways that I can make my money work for me. So here are a few smart changes I will be making or have made for myself!

Pay yourself first! This one is an easy one. Instead of waiting until the end of the pay cycle to put away the money you have left over, transfer into your savings as soon as you are paid. If you wait until the end of the pay cycle, you are more than likely to have less money left over, if any. It's easy enough to transfer back out of your savings if you get desperate, but it's a way of making that mental change. This is for me, this is for the future! 

Choose an ethical super fund. One that doesn't have massive fees, one that is going to look out for you, but also the planet! I chose Verve, I've spoken about this before in another blog. Verve was the best choice for me, but maybe not for you, so I encourage you to do your own research. 

Choose a bank that WORKS for YOU and works for you! Does that make sense? Choose a bank that has your best interest in mind, one that again, doesn't charge you to use ATMs, doesn't have high fess and doesn't support the destruction of our planet. Choose a bank that aligns with your ethical and financial values. I chose UP because it aligned with everything, but I also have a secondary bank account with ING. ING aren't perfect, but I like to not have my eggs in one basket, especially in our financial climate. 

A tip from  the barefoot investor is to put $2000 away into a totally seperate account that you don't touch. That way, if everything in your life goes a little...pear shaped, you always have that to fall back on. He says that having this will make having a "just incase" credit card redundant. Personally I never want to have a credit card again, so this is something I implemented a while ago. Knowing that that money is there makes me feel safer, that no matter what comes along, I always have a big red "fix it" button.

DO A BUDGET. What I've learned is that doing a monthly or quarterly budget, while maybe a little boring or daunting if you're doing it on your own, is super important. Especially if you want to be conscious of your spending. Even if you think you really don't spend a lot, trust me you will probably be surprised by the results! I was! I'm pretty sure there are free excel sheets you can download and even apps. But beware of apps asking you to pay for them to do your budget for you. That is just another expense you do not need.

Get educated. Read a book about finance, listen to a pod cast. Talk to a clever person in your life and actually listen. It's super easy to find information about money. In general as a population we are pretty obsessed with it, so there is no end to options for us to learn! Go on, get on google! 

Pass that info down. Teach your kiddo the value of money and teach them how to save, they most likely are not going to be taught at school so it really is up to you to do it. Teach them that money can make the world a better or worse place and that where we spend our money matters. Choosing to buy a toy from a local maker rather than a big box company is an easy way to show kids how to shop local. As soon as Olive is old enough to have a concept of money, I am excited to start a change jar with her and get her on her way to a life of financial freedom. 

Historically the power has been taken away from women by not letting us be in control of our own finances. Before the mid 19th century women weren't even allowed to have our own bank accounts without our husbands permission. We are so blessed to be in a time where we can make our own money, choose where we spend it, how we save it and what we want it to go towards.  We have the power. Why not take full advantage of it?

I want a bright future for my daughter, that's why I choose companies and organisations that treat our planet with respect. I will always try to learn and grow and make the best choices I can for her.