I tend to see a trend amongst the social media-addicted crowd these days. The focus on materialism and showing off seems to stem deeply in the crux of their image.
Show off your watch, show off your new car, or the holiday you spend your bonus on. Doing it for the ‘gram has become the holy grail for a generation whereby short-sightedness overtakes the long term build up of wealth. Is it much of a surprise that nearly half of Australians live pay cheque to pay cheque?
So what would you do differently? I understand the current economic environment is a tough with rampant global inflation and a threat of a recession hampering confidence in most.
Here are a few things I’d recommend doing to improve your financial position in the medium term.
- Invest in yourself
Most people, especially early on in their careers will complain they don’t earn enough. This is fine, so what I would recommend is think about the career path you’re on and what courses, skills, and attributes that you need to grow and develop to be in a role you want. If you’re in a graduate scheme or progression track weather its CA, CFA, Law or Medicine, then put in all your effort to passing those exams.
I know its hard especially with the long hours of work but delaying the gratification and giving yourself small rewards is the best way to get through the tough times. Having a set goal and lure of a better role, and salary is often the light at the tunnel that keeps most people motivated.
- Build up a budget
Nothing standard, but it’s the best way to understand your status quo. There’s dozens of apps, spreadsheets, and sites that can help you devise a budget. Be sure to divide up your expenses as essentials and disposable income so you can figure out where you’re able to make cuts.
- Cut down on expenses
Once you’ve made a budget, go through your list and shop around on making sure you get the best deal. Whether its your phone, broadband, insurance, there’s dozens of price comparative websites that can help you ensure you get the best deal.
- Always save
A portion of your income, put it away to build up an emergency buffer, my recommendation is 3-6 months of living expenses. Get into the habit of always saving a % of your salary, many banking apps these days can help you do this in an automated manner.
Then once you have built up your rainy-day fund, think about investments, I’d probably start off with Index Funds initially. Have a flick through videos on YouTube or even Reddit. But basically start investing early on in your life to maximising the impact of compounding later on