How to stop living a champagne lifestyle on a cask wine budget: Finance expert reveals the simple key to making debt disappear so you can start saving fast
- Eating out and buying expensive clothes can leave you in debt with no savings
- Finance expert Helen Baker said women need to stop splurging and budget
- She offered her tips for cutting back, getting out of debt and saving more
By
Sheree Mutton
and
Emilia Mazza For Daily Mail Australia
Published:
02:44 BST, 14 May 2018
|
Updated:
02:44 BST, 14 May 2018
Budgeting is a constant challenge, particularly when you’re living off one income.
Throw in a lavish champagne lifestyle that many single women enjoy and you may find yourself in serious credit card debt with little or no savings at all.
So how can you turn it all around?
According to financial advisor Helen Baker, the key to saving is to create a plan and write it down.
Financial advisor Helen Baker (pictured) said women need to be proactive with their finances
‘If we don’t have our finances sorted, it affects every area of our life,’ Ms Baker said.
‘The earlier you start, the better your outcome will be.
‘If you don’t do anything, nothing is going to change,’ she added.
Author Catey Hill said the first step to building a successful savings account that may one day act as a financial buffer is to get out of debt.
Create an emergency fund: Women should draft up their budget and start putting away savings for the future and unexpected life events (stock image)
‘Pay as much as you can each month off the highest interest debt(s) and the minimum payments on the other debts until all are paid off,’ she wrote in her book, Shoo, Jimmy Choo!: The Modern Girl’s Guide to Spending Less & Saving More.
Most often this will mean your credit card, which may have a hefty 12 to 20 per cent interest rate.
‘Remember, those gorgeous earrings, the smoking-hot pumps, the incredible meals and that fabulous vacation? Ah, the good times. But, hello Dr Jekyll and Mr Hyde – that little sliver of plastic can turn on you in an instant.’
The first step to financial freedom is minimising debt and this will often mean taking care of credit cards with high interest rates (stock image)
While many of us enjoy a champagne lifestyle on a beer budget, it’s no secret that it’s bad for your finances.
Clothes, haircuts, beauty treatments and eating out can all add up and leave you struggling to pay for your mortgage or rent and bills.
Ms Baker said many women can get into a rut of over-spending and living beyond their means.
How to get your finances back on track and save more
* Cut up that credit card
* Pay off your debts first
* Stop impulsive purchases
* Take your lunch to work and make coffee in the office
* Ask for a better deal on car and health insurance; and from electricity and phone providers
* Get help paying your mortgage or rent by having someone rent out another room
‘Don’t put your head in the sand and think it’s going to be okay, you need to be proactive in order to change your situation.’
Her key recommendation for women wanting to regain some control is to set up an emergency fund that can absorb unexpected costs.
‘It’s about having enough set aside to take care of bills and expenses and mortgage repayments in order to manage anything unexpected that comes,’ she said.
She also advised to ask for a better deal with your insurance and phone and electricity providers, which could save you thousands each year.
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