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Great at managing a business budget but failing to manage your own?

Great at managing a business budget but failing to manage your own? 1024 683 Fox & Hare

So, you’re earning decadent coin. Now what? Discover the simple steps you can take today to optimise your personal finances.  

Managing a successful business is all about understanding numbers and figures. From keeping tabs on cashflow to ensuring you have the resources to meet deadlines on-time, being in charge of a business means being organised, efficient and well-prepared.   

But in many cases, the same can’t always be said for our personal finances. While we might be kicking out professional KPIs, setting up budgets and investment strategies for our personal finances can too often be overlooked. If you’ve worked your way up in a lucrative career but feel lost when it comes to managing your wealth, keep reading to discover 4 simple ways you can optimise your personal finances today. 

Treat Your Personal Finances Like A Business Budget  

You wouldn’t take on a new project at work without a budget, so why run your personal finances without a plan in place? The first step to taking control of your money is to create a budget that clarifies your income, expenses and savings goals.  

Just like you’d do in a professional context, start by establishing your fixed costs (including rent, mortgage repayments, bills and your gym memberships) and then factor in any variable costs (such as eating out, weekend getaways and even the occasional new pair of shoes). Next, look at how much income you generate on a weekly basis to create a budget to manage your income. With a plan in place, you’ll understand how much money you have to play with on a weekly basis to set yourself up for success now and into the future.  

Track Your Expenses And Analyse Your Cashflow 

Even if you’re on a generous salary, it can be easy to overspend and end up with nothing left in the bank at the end of each pay cycle. To get on top of your money, review and track your expenses across a 7-day period to see exactly what you’re spending your money on. If you notice unnecessary expenses or poor spending habits, this is your opportunity to take action and make some changes to the way you are managing your cashflow. Could you swap your daily almond croissant for pre-made brekkie from home, or pause the gym membership you haven’t had time to use?  

Make Your Money Work Harder For You  

Not sure what you should be doing with your savings? The best way to make your money work harder for you is by exploring your investment options. Although all investment options come with a level of risk, investing is one of the most effective strategies to help you build long-term wealth.  

Too often we see people avoid investing altogether because they are confused about what options are out there. But, particularly for those of us generating a good salary, investing in an asset class that aligns with our appetite for risk is one of the best ways to grow your wealth.  

If you’re looking for a low-risk investment option, you could consider defensive assets such as high-interest saving account or a term deposit. However, if you’re happy to accept a higher level of risk, growth assets such as shares or property could be a wise investment strategy for you.  

Set Regular Non-Negotiable Check-Ins 

Just like you would schedule regular meetings for big projects with your team, its essential to set time aside to regularly check-in with your personal financial life. Treat these check-ins like non-negotiable appointments and even consider bringing your partners into the conversation to discuss your personal finances together. Whether you catch up quarterly, bi-annually or annually, make sure these meetings are focused and take the opportunity to assess how you are tracking towards your long-term financial goals.