Top Ten Tips for Smart Money Management

for MANAGEMENT Peter Nicholls B.Com (Acc+Fin.)

Personal Money Coach

Introduction: Ideally I would have envisaged gaining good Money Management skills, after graduating from four years of Accounting and Finance studies at Uni, and subsequent work in the Accounting field thereafter.

But recently becoming Married as well as a recent Home Owner, has really emphasized the significant need for personal Smart Money sense - which I believe is very critical for everyone - notably Grads and Young Adults.

I trust this short booklet can be a good launching pad as you step out into a lifetime of financial decisions.

Healthy Financial Regards Peter Nicholls Melbourne High & Monash Uni Grad (‘99)

10 TOP TIPS for

$MART

MANAGEMENT PART I: Practical TIPS for the WISE Handling of Money PART 2: SMART LIFESTYLE Money Habits to cultivate early on

Background note: i) Money use is always reflected in your Values Priorities and LIFESTYLE CHOICES

It is very clear, various priorities and values govern the use and handling of money.

One mate will “invest” $85k into a new Holden HSV while another will go on endless overseas trips.

The flow of money in our lives will be directed towards our “inclinations” or those things we deem as VALUABLE. For some, investing in relationships – (family or otherwise hold much stead). While for others, getting established in life is critical.

Which ever way you look at though, money is fundamentally essential for living in Australia.

TIP 1: Great Money Management Boils down to Basic ACCOUNTING

As an authentic accounting Principle – YOU MUST HAVE MORE INCOME (incoming cash) than OUTGOING EXPENSES in order to stay afloat and not go backwards (ie Go into Debt).

From the outset, as a Grad you must learn very quickly, the different ways of earning INCOME that there are in the world.

For many Full-time employment is a predicable way of doing this, but for more others the business road can turn out more fulfilling and rewarding.

It is worth, taking time to study indepth how Money can be cultivated and the paths to wealth that can be taken.

Tip 2: Contentment, Gratitude and Thankfulness (CGT) are Powerful mindsets to cultivate As a winning combination, CGT are excellent Mindsets to nurture when handling resources and possessions.

In regards to being Content: If you are Satisfied with your EXISTING possessions, the Pull of marketers trying to “sell” their latest gimmick won’t be as strong.

Most of Western advertising is geared around impressionable people feeling “unhappy” about their station in life.

CGT will provide a good foundation for frugal “happy” living.

Tip 3: Learning and implementing BUDGETING early in life is critical I know for some Budgeting sounds “ uncool� but trust me: Budgeting is one of the most valuable life skills you can ever learn.

Whether some of your Budget (Management) happens on a Phone app, or in an Excel spreadsheet, I believe everyone should have a fairly good idea of what they are spending Annually and take stock monthly.

Planning for up-andcoming outlays is critical.

Tip 4: Move ongoing expenses into ASSET form A critical wealth building principle to learn is making money flow towards Asset Building, rather than just regular expenditure.

As a simple example of this happening: was when my wife and I moved from Renting to Home Ownership, (with the help of a Bank loan). What was essentially a monthly EXPENSE of Rent, now gets “invested” towards building an Asset class of Property.

Any expenditure on “Learning” can possibly be considered Asset building too with increased industry

knowledge.

Tip 5: Don’t be afraid to ASK for help As a 40 something – home owner with x20 years in the workforce, I continue to be surprised how little – younger folk don’t seem that interested to use DIRECT ENQUIRY and investigation skills to enlarge their understanding on topics.

Maybe it might be that Google has eradicated the need to ask questions these days, but generally I’ve only had ONE younger guy of the 30 age I know: seek out direct help for the Real Estate decisions he’s been making.

Finance matters are quite complicated sometimes and extra counsel from wiser Older folk can always be helpful.

Part 2: Tip 6: EXPENSIVE spending to Boost “Self Image or Ego” is dangerous A Dangerous personal mode of spending can start to develop when splashing out on purchases for EGO (or Confidence) purposes. It starts as simple as “Branded clothing and accessories: the Ray bans, the Rip Curls, the Nike Air Max. All for the sake of “Feeling Good” about oneself. But before long it graduates to BMW’s, Porsches and fancy 2MIL homes.

Striving to establish a personal identity, without necessarily becoming a “Brand Boy or Girl” is a more authentic and a cheaper smarter option.

Part 2: Tip 7: Empowering Toxic Addictive Habits will DEPLETE Financial resources very quickly For many these days, spending on addictions quickly diminishes available monies. Weekend alcohol binges, gambling and smoking habits, even sugar and fast food obsessions.

Without any restraint in such uncoupled spending, money can fast evaporate from your account.

It is very IMPORTANT to realize the danger in such bad habits and practice wiser prudence and caution.

Part 2: Tip 8: Joining together either in Marriage or Defacto with a “Poor Fiscal Manager” is Dangerous The “Financial acumen” of your Marriage or “Dating” partner, can dramatically affect your financial state.

Getting into Bed (literally) with an excessive spender or poor Financial manager will put massive stress on your own financial state.

Counselling for couples when relating on financial matters is highly advisable.

This could also be said too for Business Partners you may join up with.

Part 2: Tip 9: Failure to take Mental Health “Self-Care� will probably have a detrimental effect on your Bottomline line Your Mental state is very very critical in smart money management.

Impaired thinking leads to impaired judgements about the WISE use and HANDLING of money.

This is something to be very mindful of.

Part 2: Tip 10: Failure to EDUCATE yourself will undoubtably bring harm

Ignorance in areas of personal Financial Management will undoubtably have a HUGE IMPACT on you

Visiting a Financial ADVISOR or counsellor can be a great idea for better Financial Management.

Wrapup:: The BENEFITS of Prudent Money Management

PEACE OF MIND from approaching the future with confidence.

Achieving Life’s Goals from Building a Great Monetary Base.

Way of Blessing others, Out of your substance can FREELY give more.

A Valuable Learning Opportunity

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