Author: Be Media | Page 3

Budgeting and Expense Tracking

Posted on 27/12/2023 at 7:00 am.

The first step towards financial freedom is creating a budget, and you can do this after getting a clear understanding of your financial situation. And if you’re one of the 75% of Australian’s currently in debt, it might be a good time to sit down and start tracking your expenses, as the cost of living seems to be rising weekly.

We are passionate about the appropriate use of our fast finance loans at Yes Loans, and our team of car finance brokers is here to help you put in the hard work and create your first budget. This process will help you take control of your finances and highlight the areas you can cut back or, better yet, where you can save.

Read on for Yes Loans’ ultimate guide to budgeting and expense tracking in Western Australia.

Failing to plan = planning to fail

Not sure where to start with your budget? The first step is establishing a goal.
Not sure what your goal is? Take a moment to consider what you are hoping to achieve by tracking your expenses.
Are you tired of living paycheck to paycheck? If you’re one of the many people having difficulty paying bills on time, tracking your expenses can help you change your behaviour.

Try to be as honest as possible and set realistic goals.

Choose a budgeting method

A simple internet search will bring up all kinds of templates and apps to help you create a budget. Or you can keep it simple and start with a pen and paper. There’s no right or wrong way; you just need to find something that works for you.

Budget frequency

Looking at your annual expenses can be overwhelming, so we suggest breaking them down to align with your pay cycle. Convert your expenses to match that cycle – you can do that by adding up the previous year’s bills and dividing them by 26 weeks, so you know how much to allocate to bills every pay.

Creating a budget

Learning how to budget takes time and practice. Follow these steps to create a successful budget.

Start by working out your annual income: have a look at last year’s tax return, or work through your bank statements for the last twelve months to see how much you earned. If your income varies from week to week or month to month (due to factors like casual work or overtime), we suggest underestimating your income rather than overestimating it.
Work out your monthly expenses: add up everything you have spent on regular expenses (credit card, home loan or personal loan repayments, utility bills, rent, groceries, insurance, transport expenses) along with any direct debits (mobile phone bills, gym memberships or streaming services). Look back through the last twelve months of bills to get a clearer picture. Try not to leave anything out and try not to be too shocked when you see where your money is going. Go through all your subscriptions and cancel any you are no longer using.
Define a savings goal: a savings goal can help motivate you to change your spending habits. While your income must cover your expenses, it’s nice to include some room for savings.

Overspending

One of the easiest ways to identify where you are overspending is by separating your expenses into essential and discretionary spending.

Essential spending: Find savings in your essential spending by renegotiating bills or refinancing debts, shopping around, or switching providers.

Discretionary spending: prioritise what is important to you, ranking this type of spending from most to least important, then cut spending from the bottom up. The aim is to consolidate or pay off debts and trim your spending to save more than you spend each month.

Create a monthly budget

Now that you have a good idea of your income, expenses, and savings goals, you can create a monthly budget. Allow some wriggle room for discretionary spending if possible – you don’t want to feel too restricted, or the budget will fail. Enjoy the occasional treat, which encourages you to stick to your budget.

Sticking to a Budget

Now you’ve created your budget, the real hard work begins. Having a budget is one thing, but sticking to it is another. Your goals are realistic and affordable, so you should stay motivated to stick to your budget. But – and it’s a big but – you need discipline and commitment.

Tracking your budget whenever you get paid and update it if your circumstances change. If interest rates increase or you have a new income stream, you must reassess.

Regular budget check-ins help keep things on track. After three months or so, review your budget and see if you need to change anything. Keep checking in every quarter to ensure you’re staying on track.

Debt consolidation

If you want to get control of your budget by rolling outstanding debts into one personal loan, consider applying for fast finance with Yes Loans.

Should I get a loan?

You can start taking control of your finances by applying for a personal loan. If you have a financial emergency or need some extra cash for purchasing a car, planning a home renovation, or taking a trip overseas, a personal loan can help get you on your way.

Choose Yes Loans for your fast online Personal Loan

Talk to Yes Loans car finance brokers to learn about our fast, efficient personal and car loan options. The sooner you apply, the sooner you’ll have the money! Our personalised loans come with a range of options and loan protection insurance. Once you have used the loan calculator, contact one of our personalised loan experts or apply directly for fast, efficient pre-approval.

Check out how Yes Loans can provide you with the loan you require. Call us today.

Debt Pitfalls And How To Avoid Them

Posted on 21/12/2023 at 7:00 am.

Written by Be Media

Do you feel like you only have $20 left until your next payday when you pay bills?
Do you “just make it work”,…or swipe credit cards everywhere you go?

Many of us face this predicament at some point. And our choices at that moment can have severe consequences on our financial future. So, how do you manage the pitfalls associated with debt and come away unscathed?

Today’s economy and housing crisis are not helping. Living costs are more expensive than ever, and people struggle to make ends meet. How do they make up the deficit? Credit cards and loans.

There’s no doubt that credit cards and loans are suitable for establishing credit, but when you use loaned money as income, you can create a future financial disaster.

Watch out for these four financial pitfalls:

1. The temptation to overspend

Cash is an absolute – what you have in your wallet is what you can spend. Digital money like credit cards and loans are intangible, making purchasing easier, as you think, “There is room on the card” or “They approved me up to $10,000.” The decision to buy isn’t affected by what you have in your pocket but the limit on your card. You must ask yourself whether you need it now or can wait.

2. Interest accrual

Where do we even start with interest? The premise is simple – fail to pay your card off in full every month, and you’ll begin accruing interest. And credit card interest rates can be up to 26%! You can pay two or three times the item’s purchase price if you don’t pay your credit cards in full monthly. The sale price savings you receive or the “no interest for a year” don’t add up if you’re not paying off the total balance. Always pay your balance at the end of the month or as quickly as possible.

And, if you are thinking of buying something on your credit card, make sure you set a deadline for payment to avoid paying extra interest.

3. Lack of savings

The more reliant you become on credit cards the further away from saving you move. If you are not saving up for big purchases, you’re likely not saving up for a rainy day or emergency funds. What would happen if your car broke down? Who would you borrow money from? Your car insurance company in Perth won’t cover it. Creating a savings account is a crucial first step on the road to financial security.

4. Being overwhelmed by debt

Debt can make you feel anxious and overwhelmed, especially if you don’t have support from friends, family, or creditors. Dealing with debt all alone can be a considerable burden.

Worrying about debt can:

Affect your sleep.
Affect your ability to work.
Affect your relationships with friends and family.
Make you feel insecure.

Ask yourself these questions to find out if you have a debt problem.

Does thinking about managing repayments make you anxious?
Are you struggling to make or routinely miss minimum utility bills, credit cards, or rent payments?
Do you receive or ignore letters from creditors?
Do you avoid calls from unknown numbers on the off chance it is a creditor calling?

If you answered ‘yes’ to any of these questions, you may want to get help. How would you handle an emergency if you can make minimum payments, but all your credit cards are maxed out? Once you cannot make even the minimum payments, your creditors will flag your accounts, and late fees might accumulate.

Once this happens, it’s hard to pay the debt off. If you are already in this spot, contact someone for financial counselling. A lot of credit unions offer free financial counselling to their members. They are often willing to help you get on the road to financial well-being – you might just need to ask.

You won’t achieve your financial goals by depending on credit cards, buy-now-pay-later schemes and pay-day loans. Instead, you need to create an achievable plan to help you through. Understanding the above pitfalls can help you adjust and take control of your finances.

Why opt for a debt consolidation loan?

Simplifies how you manage your finances.
Saves some people money by lowering their interest rates.
Makes life easier when you have fewer monthly payments.

Many people still wait until their debt reaches a critical stage before they act on it. Acting now can you help control your debts and possibly have a better future.

Let Yes Loans provide expert advice on whether you should get a debt consolidation loan for your needs. You don’t have to commit to anything when contacting us; there is no obligation.

Choose Yes Loans in Perth

With our customer-centric approach and commitment to providing reliable financial support, Yes Loans on Perth offers a compelling reason for you to choose us. Our streamlined application process ensures you can apply for a loan quickly and easily without the hassle of lengthy paperwork or unnecessary delays.

Whether you need a personal loan, a car loan, or a small business loan, Yes Loans has you covered. Our loans offer a range of options and loan protection insurance. Once you have a budget, contact one of our loan experts or apply directly for fast, efficient pre-approval to finance your dream long-term loan. Let one of our fast online loans in Perth help you achieve your financial goals.

Start by finding out how much you can borrow with our handy online Loan Calculator.