Inspiring Money

Les McGuire, principal of Future Proof Financial, inspires us with new ideas for saving money

What inspires you? Is it going, shopping, new car, holidays, eating out? Well, to make these things happen, it takes money. So let’s change our inspiration for saving money to be our primary goal, and enjoy the amazing treats that come with it.

I have countless conversations with clients about saving money, and often it is not the amount of money one earns which dictates the ability to save, it is the ability to say no to the daily temptations.

I often find the more money we earn, the more we spend. So, if we set ourselves goals, as small as they might be to start, we can achieve big things.

Let’s put one to the test

That holiday you have always wanted to go on, but you never get to go.

Sound familiar? Well, let’s change it and plan for the adventure of a lifetime.

I dare you to do what for most people is a forbidden practice… track your expenditure. There are many great apps available, two good ones that come to mind are, Money Brilliant and Pocketbook.

These apps come with a free account, which allows you to connect your credit cards, loans, superannuation and investment accounts. On top of that, you can use the app to create a budget, get bill notifications, categorise expenses, work out your net worth, and generate spending reports.

If you want to put in a plan to save, this is a powerful way to start that journey. By monitoring your expenditure, there are things you will find make up part of your daily routine that could become more of a treat. If you cut something out, reward yourself by putting the money away towards the real inspiration you want.

The money you put away needs to be off-limits.

How do we achieve this new inspiration to invest right?

Money in the bank is often too easy to access and drives wrong decisions. Lets set up the holiday investment fund and invest in a low-cost investment like a managed fund, which will provide benefits with potential franking credits, good yield and ideally strong growth.

If each week we put the money into the new investment fund we saved from the indulgences we forfeited; we will start to build a good holiday treasure chest. The power behind this style of strategy is the psychological component of not wanting to sell the investments and deplete the account.

The reason for this is the underlying investment will fluctuate in value however, with each regular contribution made into the fund will help it grow over time and this saving strategy can become addictive.

Set yourself the end goal that you want to reach and then redeeming it will be easier and you will enjoy the holiday experience knowing that you earned and deserved it. Some of the best ways to save money over time are through the use of managed funds, direct shares and ETF’s. Some of these investments can be done directly however, I recommend you see a financial planning professional to help you on this journey. The reason for this is the complexity of choosing the right assets to help you achieve the goal, knowing how much money you can afford to invest and the best way to invest the money. With the right planning and strategy, many people achieve far better outcomes.

As always keep smiling and if you have any questions send them to les@futureproof.com.au

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