Most Australians have the same dreams: to buy big-ticket items like houses, brand new cars or luxury overseas holidays. These are great, but expensive, dreams. In July 2019 the Australian Bureau of Statistics released their latest data on housing finance. The findings showed that on average, Australians were borrowing more than $425,000 for their home purchases. First home buyers were borrowing slightly less with the average loan valued at $366,000. The average cost of purchasing a car in Australia is over $30,000. And holidays … well, Australians are the second-biggest spenders on holidays with a nation-wide cost of $63.6million spent on travel every year.
The unfortunate reality is that many Australians will struggle to see their dreams fulfilled or simply settle for the lesser items like the small second-hand car, a domestic two-week holiday or the "this'll do" house. And, this scenario isn’t limited to just those on an average income. In fact, for those that are on a higher income, the situation is often worse because they treat their income as ‘disposable’ which puts them in the spending mindset, rather than the saving mindset. So, what can you do to break the disposable income cycle and set yourself up to easily buy those big-ticket items?
Think of Savings like a Fine-tuned Sports Team
All successful sporting teams are structured around a strong foundation of key players and game day plans. Setting yourself up for financial success should be no different. To break the disposable income cycle and reach your goals, you will have to devise plans and put good structures in place.
Start by writing out all of your goals and prioritising them. These plans may include getting yourself out of debt, eliminating credit cards or saving for that deposit. If it helps, create a dream board to keep you motivated.
The most successful sporting teams have strong backline defence. For you to reach your savings goal and curb your disposable spending habits, you need the same. We recommend opening a separate bank account not linked to a card, so you can transfer money to it, but not easily withdraw or spend. If you are likely to be tempted to transfer money out of that account, we advise setting up two-factor authority so that you have to go to more trouble to withdraw the money.
Now that you have your goals and your separate account, it’s time to work out how much needs to be allocated to the goal and commit to that figure. One way to stay committed is to have a direct debit set up for payday. These strategies are your front-line attack: the ones that will keep that savings goal ticking over with numbers ever increasing.
What would a good sports team be without its coach? They come up with the plays, are responsible for team morale and are the brains the athletes look to if things get hairy. For your finances, this is your Premier Spending Planner. Throughout one of our spending plans, our coaches will stay in regular contact to discuss your plays, help with your defence, set up your attack and provide consistent guidance and moral boosts if things get tough.
Have you been SABOTAGING Your Ability to Reach Your Dream Goal?
Find out where all of your money is disappearing to, how to achieve your big goals while still living well and how to reduce and eliminate debt in the fastest way possible below!