How to save more money in the mines?
The correlation between increased earnings and elevated spending holds true for many Australians, especially those in the mining, oil, and gas industry. The common belief that a substantial income guarantees a continuous influx of funds often results in the development of undisciplined spending habits.
Similar to pursuing fitness goals or personal achievements, establishing a structured approach is essential. In budgeting, we apply this structure through the 3 F's: Fixed, Flexible, and Fun. While these expenses vary individually, here are examples for each category:
Fixed Costs - Fundamental expenditures such as mortgage payments, utility bills, and car loans.
Flexible Expenses - Variable but essential costs like haircuts, clothing/tools, and other daily necessities.
Fun Expenses - Non-essential items like dining out or socializing.
Our recommendation is to segregate fixed and flexible expenses into an account with a different bank, without an attached debit card. This introduces a barrier before tapping into funds. The fun account, however, can be linked to a debit card with no redraw option, limiting spending until the next pay cycle. Additionally, consider consulting your payroll department to explore the possibility of automatically channeling funds into these distinct accounts.
Given that the allocation of items to these accounts depends on individual financial goals and priorities, trial and error often proves to be the most effective approach. Remember, progress is more valuable than perfection, so initiating a spending plan sooner rather than later is advantageous. For more detailed guidance on budgeting, you can explore our webinar on the website. Feel free to contact us if you wish to discuss this further.
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