The post pandemic world isn’t always an easy one. Interest rates keep rising, with the general cost of living soaring. Reports out at the end of May suggest bills at major supermarkets have already risen by almost 10 per cent over the past year, outpacing the March quarter inflation rate of 7 per cent.  It’s not a great time to be paying off a mortgage or saving to buy a house, however, better financial planning can assist.

Here are some top tips from our advisors to manage personal cashflow.

1. Analyse your goals to stay motivated. What is it you want to achieve? Do you need to manage household spending better, plan for private school fees, or plan for retirement in a few years.
2. Know what you earn and what you spend. This may seem obvious, but in the world of online banking and Apple Pay it can be harder than you think. Spreadsheets can help. Go through all the credit cards and bank details first then organise the figures into sections: costs you can’t avoid (like bills, mortgage payments, car costs, school fees, insurance etc); costs that are discretionary (take-outs, gym classes, clothes etc); and usual food costs (supermarket, deli etc). Once you have the spreadsheet itemised, you can work out which bills can be reduced either by limiting spending or by finding a more cost-effective supplier (i.e., electricity providers, health insurance, even where you have your car serviced). Some bills cannot be reduced like property rates or rent, but you can make a plan to save for those costs by highlighting them in red or setting up monthly or quarterly payment arrangements.
3. Consider prepaying bills – some bills can be prepaid which might help cashflow and reduce stress later.
4. Understand your debts: While you might not be able to do much about your mortgage costs (changing banks or asking your bank to revise the rate they charge you can help though), you can aim to stop using the credit card and to pay down existing debts, and adopt a regular savings plan. Work out the level of interest you are paying on your debts and, if needed, speak to an adviser about what you can do to pay it off faster.
5. Understand when you might need to seek advice. There are websites that provide general advice, or you can make a confidential appointment to speak a professional financial adviser.

If you are experiencing problems or are interested in some more personal advice to help you get things under control, we invite you to schedule a meeting with one of our friendly financial advisers. It could be the best hour you’ve ever spent!