When we talk about being in financial distress, we often immediately assume it’s always about having a lot of debt. 

Sometimes, our expensive lifestyle and spending habits can get the best of us too.

We see people’s financial positions everyday and we noticed one of the common behaviours with people who struggles financially have unorganised spending habits. Sometimes, people don’t even noticed their spending habits until we sit down and look through their bank statements with them.

Debt management and building savings start from the smallest things we do.

Here are steps you can take :

1. Do a budgeting by looking through your bank statements to see how much you actually spend a week/month.  Don’t guess or assume, be honest and thorough with your calculations.
2. Then look at how you can cut down on your spending. For example, if you are spending too much on utilities, find ways to save by changing companies, turning lights off when not used, do bulk shopping when there is a sale on etc.
3. Create a few savings account for you to run your expenses – have one for expenses, one for holidays or bills and one for holidays or entertainment (as many as you can manage and that works for you). Make sure to put the money you save from cutting down on your expenses into an account where you can see it grow.

Once you have worked out a method that works for you and your family, be determined and consistent with your new methods as it will take time to develop new habits and build savings.

If you feel that you needed professional help in this area, please do not hesitate to contact our office.