The Reserve Bank looks set to keep its official cash rate at 4.75% at its February Board Meeting today. That's good news if you're already struggling under the weight of hefty home loan repayments and your Christmas credit card bill.
But why sit with your fingers and toes crossed each month waiting to see what the RBA and banks do with rates. Why not make 2011 the year you get proactive about your personal finances? Get off the rollercoaster and join the quiet revolution.
Yep, revolution. It seems Australians are spending less on their credit cards for the first time in decades and we're starting to save more.
The nineties and moughties fashions of living from month to month on your home equity and credit card seems to now be old hat. So what are the first steps you can take to take better control of your financial future?
The first step is to review your current financial position. If you don't know exactly what you spend each month then how can you possibly know if your current situation is sustainable. Here's an exercise to try. Keep all your receipts, for everything, for one month. At the end of the month add up exactly what you've spent on groceries, coffee, movie tickets, train tickets, clothes, medicine, petrol, pets, etc etc etc.
This will give you an excellent snapshot of whether you are currently living within or hbeyond your means.
Truepenny
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