Last month I participated in Vinnie’s CEO Sleepout and it was probably everything you imagined. Cold, wet (I live in Melbourne) and very uncomfortable. What I most remember was how incredibly unsafe I felt, even though I was in my own backyard. It was a humbling experience, and I am very proud to have supported this great cause, and raise some money for the thousands of Australians including more than 20,000 homeless children who spend every night in worse conditions than I did.
There are many reasons for why people become homeless including; poverty, unemployment or a shortage of affordable housing1, however financial difficulty is a clear trigger for many, and that is an area I can help further contribute.
At Fiducian, we’re passionate about raising financial awareness within the broader community and helping people avoid those financial difficulties. If you know anyone who needs to get back on track, some basic money management tips below just might help.
- Budgeting – we say this all the time and I’m sure you have heard it all before but budgeting your finances is so important. Go by the 50, 30, 20 rule and you should be safe. 50% of your wages to live off, 30% to save and 20% is your disposable, or fun, allowance.
- Compound Interest – it’s not regarded as the 8th wonder of the world for no reason. Whether you are young and saving for a car, growing your nest egg or already retired compound interest will boost your savings.
- Emergency Fund – COVID has had an immense impact on people all over the world and it has highlighted the importance of having an emergency fund as you don’t know when or how quickly things can change. An emergency fund is where you have a separate saving account or investment that you can access for unexpected expenses. I would recommend having a minimum of three months’ worth of expenses saved.
Setting some money aside every month is a great way to start building your wealth and our Financial Planners are here to help.