Smarten up your spending

Know your cash flows: The only way to really get on top of your finances is to know exactly where your money is going. Sit down and map out where your family wages are spent then take the time to work out what the essentials are and where you could cut back.

Save: It’s the easiest way to improve your finances! Make it a must rather than a consideration by setting up a monthly direct debit: 10 per cent of your salary is a good start but if you’re saving a lot of extra cash in interest repayments as a result of the drop in interest rates bump it up while you can.

Keep control: A weekly allowance is an ideal way to give you some spending money while keeping tabs on it. Use your allowance to buy those extras like clothes or DVDs, and if it’s a big ticket item you want, keep saving until you can afford it!

Stop using credit: Credit cards, no matter how much you think you need them, are more often than not more trouble than good. Cut back on the number of cards you have as well as your limit; moreover only use them when you can transfer the cash immediately.

Up your mortgage repayments: One of the best ways to improve your financial position is through increasing your home loan contributions. If you can maintain the repayments you were making before the rate cuts, try dedicating at least one quarter to half of the money you are now saving back to your mortgage. You can potentially save tens of thousands over the life of your loan by paying more than the minimum repayments.

Being cash conscious doesn’t need to feel like you’re suffocating; just remember to plan your finances, monitor household expenditure, spend carefully and you’ll be able to make a huge difference to your financial future!

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