One third of Australians suffer from financial stress, which has devastating effects on their physical health, mental health and even social relationships. You should also devise and implement a solid financial strategy. Save money for emergencies, diversify your investment portfolio and save wherever you can.
Let’s take a look at some of the best ways that can help you manage your expenses better and reduce your financial stress.
Set a Budget
You would’ve already have heard this many times before, but we’re including this here just to emphasise the importance. One of the best ways to control your finances is to simply set a budget, and then stick to it.
When planning a budget, the key is to be realistic. List down all your fixed cash flows, and then set aside some portion of your income in a savings account. Note down all your expenses through any suitable app on your phone or PC.
Sign Up for a Life Insurance Policy
A life insurance policy has so many benefits for every individual, young or old. Signing up for coverage gives you peace of mind, providing financial support to you as well as your family. Should you pass away unfortunately, your family is provided with a source of income. Moreover, the policy also covers your burial expenses and pays off your debt.
What about the costs involved with buying adequate coverage? Signing up when you are young reduces your insurance premiums. Other factors that affect your monthly payments include health and lifestyle habits and your chosen policy/premium types. Financial experts at Freedom Life Insurance advise that term life insurance and level premiums are generally more affordable in the long run.
Invest in Gold
Investing in gold is a solid strategy to diversify your portfolio, minimise risks and thus, saving yourself from financial worries. Gold prices usually tend to rise and often act in an opposite direction than market trends.
Generally, gold coins and bullions are a more preferable investment option compared to jewellery and physical gold. Compare gold prices, work with a reputed dealer like goldstackers.com.au, and you should enjoy a good return on your investment.
Pay off Your Debts
Interest often tends to take up a huge portion of your total spending. If you have yet to pay off your debt, consult a financial advisor and come up with a proper plan to become debt free at the earliest.
Reduce Your Expenses
Simple changes to your spending habits can actually help you save significantly in the long run. For instance, you can start taking lunch from home, rather than eating out. Avail discounts whenever you can, and redeem your points regularly if you’ve signed up for a loyalty program.
Avail an income protection plan that covers your expenses if you can’t work for some days due to an injury or illness. The average cost of such a plan are around $1.40 but factors like your age, occupation and smoking status do affect the rates.