It might not surprise you to learn that many Aussies are worried about their finances. Whilst  a lack of money often keeps us awake at night and causes us an undue amount of stress, one of the biggest problems is that we don’t know where our money goes.

Getting a handle on your finances in 2019 should start with an understanding of where you spend your money, because if you don’t know what is eating your money, you won’t be able to make any positive changes. Research has shown that financial stress can cause insomnia, poor health and angry outbursts, and we all know where fighting over money leads.

Earning more money isn’t a golden ticket

For some people, earning more money is their answer to their financial stress, however if you don’t have a solid budget, more money isn’t going to be of much help. People on high incomes, for example $150,000 a year, are still under financial stress, but just at a higher level. These are the people who take out really large mortgages and they struggle to pay their bills just as much as people earning $90,000 a year.

Financial stress is relative! If you have enough money to pay your mortgage or rent, buy food and clothes, and provide for your basic needs and still have some discretionary money left over – you should be happy. More money doesn’t make you happy, an abundance of money doesn’t make you happy!

All it does is give you more opportunities to buy more expensive food, clothes, gadgets, houses and cars. People who earn a high income generally spend their money on the same things as people on lower incomes, they just spend more of their money on these things. So they usually end up in even more debt than people who earn a lower income.

When people earn more money they tend to spend more money, they don’t save it. They buy a better house, a better car, a better sound system, a bigger TV, designer clothes and go to fancy restaurants. Earning more money, if you don’t have a handle on your expenses and you don’t have a financial plan in place isn’t the solution to your financial stress.

What’s the solution to your financial stress?

This is where creating a workable financial plan is vital to reducing your stress levels - so that you can see where your money is going and come up with a viable plan that ensures your bills are paid and your family is taken care of properly.

The solution is exactly the same for people regardless of their income, because even people on high incomes don’t pay enough attention to their expenses and often land up in financial stress. Whatever your income, you must know where you are spending your money and look at ways to curb your excessive spending and channel it into your bills or into a savings plan.

If you decide to get a second job or a higher paying job instead of understanding where your money goes, then you will simply spend even more money and dig yourself into deeper financial trouble. On the other hand, if you want to reduce your financial stress in 2019, why not ask an expert to help?

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For help managing your financial affairs, call me (Amanda McCall) on 07 3356 6929 or book your appointment online.