Happy new (financial) year. This is the time of the year when many people get a shock when they see how much they earned last financial year (and get to ponder over where it all went).
One of my staff members commented that her partner payed more in tax that she earned for the whole year. He works a FIFO job making a huge salary and the reality of that income (and tax paid) hit home when the numbers were there in black and white!
Below is an e-mail I received from one of my Simple Wealth Steps students this week. It puts a different perspective on what you could experience when you find out what you earned for the year and it’s typical of e-mails I receive from people who use my system.
For the past year I have been working part time in a number of temporary jobs. I have just received all of my PAYG certificates from my employment agencies. My gross income was approx $10K less than last year when I had a full-time job!
My income has decreased, my expenses have increased, yet my debt has gone down.
I’m now much more aware of when I have an issue. Do I think that I have nailed where all my funds go – no not at this stage.. However, I have lived on substantially less and no longer worry about paying my bills!
I’m looking forward to getting a permanent job this coming year, I think this (Simple Wealth Steps course) has taught me a big lesson and I will use this more substantial income wiser than I might have before.
My only comment for Molly is that knowing where all her money went is NOT critical. It’s quite OK to have some money each week that you can just spend without having to account for or record where it went (otherwise managing your finances can become just plain tedious and nobody wants that)!
The trick is to have a ‘road map’ for the essential predictable expenses that you need to pay for and you check in on that ‘road map’ each week to make sure you are on the right track and that that part of your finances are under control. It should take less than 5 minutes each week to compare your bank balance with your pre-planned target bank balance!
By isolating that money from the money you allocate each week for the 3F’s of Food, Fuel, Fun (and any other incidentals) you make expenses that previously seemed unpredictable turn into a regular predictable set amount. By then sticking to your allocation (and reviewing it from time to time if necessary) you really can take a lot more control of your finances.
Molly is a perfect example of someone who has proven that higher income is NOT the key to financial success. She paid off debt and felt more in control while earning less!
So, I would love to help you experience this as well!
I have seen time and time again, people who thought that earning MORE would lead to less financial problems but as their income increased so too did their money problems!
I thoroughly recommend that if it’s at all possible for you to join me at my ‘Succeed With Money’ workshops in Melbourne or Sydney next week-end that you take this opportunity to come and learn how to ensure your 2014-15 financial year is the absolute best it can be.
Check out the details at https://www.simplybudgets.com.au/financial-education/succeed-with-money-2/
This is a life changing opportunity not to be missed.
You really CAN have more holidays, less stress, more savings, less debt, more fun and generally have money as a companion rather than a dictator in your life and most likely all without getting a higher paying job.
You will be living the same life you are living now in 10 years time regardless of your income unless you do something to change.
(Perth and Adelaide residents can also book a place at their respective workshops.)
Oh and if you read my recent e-mail titled ‘Why I’m Going Bald’ my next post will reveal how I found out I’m going bald (you might even find it somewhat amusing and entertaining)!
That’s all for now.
Have a great week-end!