This month ZOE SLATER, Counsellor and CEO of Freedom Choice Academy provides guidance and tips on how to audit and increase your savings ability so that you’re not left destitute and strung out financially if or when life goes south.  

Unfortunately money doesn’t grow on trees. In today’s world if we want to enjoy a good or even decent standard of living money is a necessary requirement. In the end your ability to save makes the difference between you just surviving or thriving.

The first question is how much savings do you have right now?

Did you know that 28% of Australians have savings of less than $1,000. This statistic was revealed recently by an ANZ Bank Financial Well-being Survey.

Worryingly… these findings mean that almost one third of all those living in Australia have savings of $1000.00 or less.

The findings of this survey are troubling and for those 28% without adequate savings the constant level of high stress, anxiety and insecurity often leads to poor overall health outcomes.

How can you ensure that you’re NOT part of the 28% club?

Start by giving consideration to your current savings situation and do an audit.

If something happened to you, how would you financially survive?

You might say you have insurance, but by time the insurance company has responded to your needs, you can be thousands in debt.

If you have no savings and your credit cards are already maxed out, what happens to you then?

What if you were fired or your business was forced to close down, how many days could you live for? According to ASIC, in 2016 average weekly expenses ranged between $1,100 to $1,700 depending on which state you live in.

Imagine if these same 28% of Australians stopped working, they could be penniless, absolutely broke and destitute within just one week.

  • Does this make you feel secure and confident?
  • Do you feel in control of your life or a worried and anxious about money, job or business security?
  • Have you become a slave to your bad money habits?

Two things I see at this stage

  1. You’re living life having fun. Perhaps you’re young and don’t have a care in the world or you have recently left a bad situation and need to be reckless for a while or
  1. You’re struggling and living week to week, paycheck to paycheck and feel trapped by your pattern.

Time to assess and audit where you’re at

If your living life and don’t care, enjoy it until it does matter. Financial maturity for some happens gracefully and for others financial maturity metaphorically speaking hits them in the face with financial reality.

The bottom line is that bad money habits can place misdirected pressure and annoyance on other areas of your life.

What I mean by this is… you don’t like your job, but you can’t afford to quit because you have no savings. Therefore, it’s easier to hate and blame your job than be angry at yourself for not having a savings plan to cover a employment transition.

Often this anger is projected at the business or the boss. You may even feel trapped or chained to the job or business.

  • I challenge you to go beyond the 28%.
  • Take responsibility for your own choices and freedoms.
  • Turn your savings security and money confidence around, you may even find you like your job again.

If you’re ready to be financially awake, conscious and accountable…

Then consider how much savings will create financial safety, confidence and freedom for you. Take a moment to imagine a life absent of financial fear, notice how relaxed your mind and body feels.

Be aware of what your weekly expense are, for this example imagine you have $3000 saved does that make you feel secure. No! Then imagine $6000 saved does that feel secure, keep going until you hit the sweet spot of enough.

Create a savings ritual that you stash away money every day or week at the same time in the same way, therefore creating a deliberate mindset pattern of Money Success.

Is this how you would prefer to see yourself, feeling more in control of your life. Yes!

The key points are;

  1. If something happened to you, how would you survive financially?
  2. Take responsibility for your own choices and freedoms.
  3. How good does Money Success feel!
  4. To be in control of your life be ritualistic about saving your money. 

Deeper insights for you to think about and consider

  1. Observe your money anxiousness and patterns, choose to take control or be controlled.
  2. Savings is your First financial safety net.
  3. Don’t depend on Insurance for your first line of financial security.
  4. Insurance often pays you less than what you imagine.

MAKE A PACT TO ACT – Practice the art of having money success and I assure you, your life will start heading in the right direction.  Keep those questions coming

If you have any questions or need help or guidance please send me an email, give me a call on M: 0414 778 476 or visit me on Facebook @freedomchoiceacademy.

Zoe is the director of Zoe Slater Counselling and CEO Freedom Choice Academy. She studied at The Australian College of Applied Psychology, Sydney Campus and completed her Diploma of Counselling and Communication at the Brisbane Campus. Zoe is an Associate Member with the Queensland Counsellors Association Inc and a member with Australian Counsellors Association.

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Finance Education Money Stress To Success – Audit Your Savings Habits