Step 1 - Get organised!
Regardless of whether you run your own business or are an employee of someone else who does - it is important to keep to keep good records. In relation to finance, many lenders require verification of employment, income, credit commitments, etc. Keeping an archive of important documents, credit statements and key assets will provide order and an easy reference source to the things that structure our lives.

Complete archive set for all your documents.

• Income - payslips, entitlements & conditions schedule, superannuation, benefits, tax returns, etc.
• Assets & liabilities
• Personal & family assets
• Utilities statements - gas, electricity, phone, rates, etc

Step 2 - Personal & home budget analyser

The next step in taking back control of your spending and directing it more energetically towards real asset creation is to take a snap shot of your current financial position. This is a reality check and brings to the forefront the results of your working efforts. It will help you get clear about your goals and priorities as well as set up some personal budgeting tasks and actions.

Make a Quick Enquiry if you want to find out more on how to do a personal budget.

Personal budget analyser

The first step in taking back control of your spending and direct it more energetically towards real asset creation is to take a snap shot of your current financial position. This is a reality check and brings to the forefront the results of your working efforts. It will help you get clear about your goals and priorities as well as set up some personal budgeting tasks and actions.

Step 1 = Your nett worth
The first step will establish your net worth. This is done by listing all your assets (what you own - either fully owned or paying off) minus all your liabilities (what you owe).

Step 2 = Your cashflow
This section is simply a money IN less money OUT calculation. The expenditure sheet will allow you to list all your expenditure. A Cashflow Analysis tells a story and can give you clear indicators of where you can to take control of your money. There are only three “taking control” options.

These will either be -

• increase your income, (affording the lifestyle you have already become accustomed to).

 Click here to find out more on how to

 recession proof increase your income

• reduce your spending or adjust your expenditure to reflect your income (living within your means)
• or all of these.

After completing the budget analyser you can also submit it to Finance Café for review and preparation for part two - doing a budget plan. This looks at what you can do to increase or redirect cashflow into priority areas and establish key lifestyle and savings goals.

Consolidate personal credit debt

Personal credit in the form of store and bank credit cards, personal loans are handy for short term credit. But if these are let to run without paying out the debt each month then they can soon become a burden on your monthly cashflow. A smart alternative to manage credit is to consolidate personal credit debt into your existing mortgage. The interest rate on your home loan firstly is a lot cheaper and you can set up facilities such as an offset or redraw account to access your funds. You can even have a credit card attached to your home loan account at home loan interest rates which can void the need for a traditional unsecured credit card. Here’s an example -

Credit mediation
There maybe a time when finances or credit commitments have “got a bit out of control”. If creditors are applying pressure for repayments, legal action or even worse eviction then this is the time to bring in professionals in credit mediation. One on one negotiations with your creditors using someone with the experience and credentials can make your life a whole lot less stressful. Often a solution and agreement can be reached that makes sense to everyone.

Finance Cafe Pty Ltd  ABN: 43 113 855 173

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