It is very simple: To gain wealth, you must spend less than you earn.

Being fiscally astute is not rocket science. Let’s review simple options to help you turn your spending habits around and achieve a positive personal cash flow.

  • Settle bills by the due date unless there is an incentive to pay early. Your money is better placed to work for you in an offset or high interest account.
  • Pay off high interest rate debt to free up money. This is your priority task. Debt is not a given. Break the cycle and pay off your debts. Pay as much extra off the debt as you can. This will ultimately reduce the amount of interest you are paying and save you money. Short-term pain for long-term gain.
  • Use credit cards as a means of delaying cash payments to manipulate your cash flow to your advantage.
  • Be market savvy. Keep an eye on the interest rates you’re paying on your debts and make sure they’re competitive. If they’re not, speak to your bank.
  • Evaluate your daily spending habits. Keep track of every item of expenditure for a month. It is probable that you will be shocked. Consider carpooling to work, making your own lunch and ditching the gym membership in favor of going for a walk with friends and family. You will be surprised how much you can save!
  • Offset your mortgage. Reduce non-deductible interest on your mortgage by considering the benefits of having an offset bank account linked to it.
  • Be mean. Develop an attitude toward cutting costs, no matter how small. Turn lights out when you leave a room, sleep on purchasing decisions never impulse buy etc.

Making changes to your spending can feel hard. Persist. Being cost-conscious will have a far greater and positive impact on your life.