Peoples of Pearler — Caroline

“Saving is never the obvious thing to do. Far from it. There are messages everywhere telling me to spend money, and barely any helping me to save. Buying a home is a distant reality and retirement funds are an even further away fantasy. Saving money is unnatural to most. It’s a hard decision that needs to be made. People need help to see the value in it and they need consistent support to turn these values into habits” — Caroline

For many of us, being smart with money was never our forte, and probably never will be. Managing money is a skill and like any, some skills were good at, others, not so much. I know people who make it a habit to count their coin collection every second night but then at the same time, I know people who’d rather eat their brussel sprouts than have to do deal with their finances. Whoever you are — don’t be ashamed. Focus on what you are good at and reach out for support in what you aren’t. Ask friends, build a network, do the research and look for objective information.

But how do you know for sure if information is objective? Government organisations, companies and authors with no interest in taking your money is a good place to start. For example, the Australian Security & Investments Commission’s (ASIC) MoneySmart website provides an abundance of guidance, support, and handy calculators. The consumer advocacy group Choice also does a great job.

Personal finance books like the Barefoot Investor and the Intelligent Investor can be borrowed at your local library for free. If you find one you really like, we suggest buying your own copy so that you always have the tips you have read and understood nearby. And, if you need budgeting assistance, there are now a number of free apps such as Pocketbook which link to your bank and automatically track your expenses. Your expenditure is then organised into categories like clothes, groceries and fuel, giving you an overview of where your money is going.

Lastly and most importantly, don’t get too stressed about buying a home or having an impressive bank account balance right now. Times have changed. It is absolutely clear that the cost of living has increased. Most likely, your friend who purchased their first property and posted the photo of themself gleefully standing in front of there newly acquired house probably didn’t do it alone. To give you an indication, the average person aged 25 to 35, is saving about $533 a month. Saving takes time, as does making worthwhile investment returns.

So even if you don’t have anything to show for it now — first learn the art of saving before you start painting your future.

Disclaimer: At pearler, we pride ourselves on the quality of the financial advice we give, however, this advice has not been tailored for you. You may have unique financial goals, circumstances or needs which make this advice inappropriate, and it is important that you know whether you do. If you’re unsure we urge you to speak to someone you trust who is competent with money and understands your individual needs, whether they be a trusted friend or professional.