I am new to the process of improving my financial position.
I am keen to learn about improving my passive income through blogging and increasing my investments (This will take time).
One thing I was good at from my university days was managing my expenses vs. income. I would recommend this as a starting point to any young person.
It is really easy to do and you can see the benefits immediately.
Take control of your money
I started an excel spreadsheet to take stock of my income and expenditure when I was at university. This was an attempt to make sure I wasn’t spending random amounts on eating out and I was keeping track of my bills.
I was able to budget how much I would have to socialise too, therefore avoiding huge blowouts leaving me struggling for the rest of the month (This still happened at times).
My current spreadsheet looks like this:
I get paid fortnightly (I find this much better than monthly) and as you can see I track my income and my usual expenses. Once I get paid I immediately transfer my savings into my savings accounts. You can also see a $50 sum goes straight into my investments with SuperLife.
My aim over the next few weeks is to try and cut down my expenditure after reading this blog, which was a real eye opener.
My first port of call is switching energy suppliers and changing my phone package to reduce my costs.
There is a rule called 50/30/20 which suggests you should spend 50% of your income on living expenses such as rent and food, 30% on non-essentials and 20% should be saved.
I am currently saving around 25% but I feel there is more to be gained.
I will update you on how it goes shortly.
Thanks for reading.