According to the University of Melbourne’s latest Pulse of the Nation report, almost a third of Australians are under financial stress while struggling to ‘make ends meet’.
Though monitoring finances can seem a little overwhelming, there are easy steps we can implement to reach financial goals to live our best life while sipping champagne in the Maldives.
Ok, maybe not that bougie, but there are companies out there willing to help everyday Australians become more fiscally responsible.
If you’re tired of banking institutions and lengthy application processes, say no more, as MONEYME is a responsible lender for digitally savvy Australians looking to upgrade their life and are open to new ways of accessing finance.
The future is upon us, friends.
With the nation grappling with a cost of living crisis, becoming a little more financially savvy is a life skill we all require.
LADbible sat down with MONEYME’s COO Jonathan Chan, for his top tips on how to manage your money.
When it comes to managing finances, it can be a little overwhelming. What is the number one tip for getting started?
Consistency is key, as even small changes can have a big effect in the long run, due to the compounding effect of time. Creating positive habits is half of the battle won.
When it comes to your personal finances, it can be helpful to set short-term goals that will help you achieve long-term goals or long-term financial wellness. Hitting your short-term goals consistently is rewarding and helps you create positive financial habits.
This could be, for example, to follow the 50/30/20 budgeting rule, e.g. 50 per cent of your income goes to essential living expenses, 30 per cent goes to discretionary spending, and 20 per cent goes to savings.
Are there any trends that have popped up in the last few years that have been huge for helping people manage their finances?
Yes, and technology is the driver as most of us are using our phones to do pretty much everything these days.
There’s a lot of studies on what creates lasting habits - and research shows that making a habit easy and attractive will increase the chances of you sticking with it in the long run.
App developers understand this and while there are a lot of apps out there that might foster bad habits, there are also a lot of great apps that help you get savvier with your money. Examples include apps that gamify and automate investments and savings, budgeting apps and, of course, credit score checkers (hint: MONEYME has a free one).
When do you believe young people should start considering a credit card?
Whether to get a credit card or not has more to do with your personal circumstances and if it’s the right choice for you.
Getting a credit card can have a lot of benefits. It can help work as a buffer for unexpected expenses, help you smooth out your spending during the months where you spend a bit more (e.g. silly season), and it can have some really attractive rewards features.
Another lesser-known benefit is that it can actually help to improve your credit score, as (if used responsibly) it can show lenders you are a reliable borrower who repays on time.
How can I carefully manage my credit card without falling into debt?
Make sure you always make your minimum repayments on time, as missed payments can leave marks on your credit score. If you’re working to improve your credit score, one tip is to keep your utilisation ratio (i.e. how much of your credit limit you are using) low by paying off more of your balance each month, or paying it off completely.
What are some other tricks that you'd recommend?
Check your credit score regularly! It will only take a few minutes and you can do it for free with MONEYME. It’s a good pulse check on your financial wellness (as it’s a big part of how banks and lenders see you).
Your credit score is important because it might impact whether your application gets approved or not. Many banks and lenders also apply risk-based pricing, which means if you have a good credit score and are seen as a less risky borrower, you might score a better interest rate and a bigger loan amount.
Finally, tell us a bit more about MONEYME?
MONEYME is a digital lender and non-bank alternative, offering fast and simple credit products. Whether you’re seeking a personal loan, car loan, a credit card, or you just want to check your credit score, MONEYME can help.
We take a different approach to lending and focus on creating really innovative, digital-first experiences.
One example is MONEYME’s Freestyle Virtual Card, which is a digital credit card that’s ready to use straight away once approved. It works like any other Mastercard but it’s 100% plastic free, can be used to transfer to any bank account, and it has a bunch of exclusive perks, including up to 40% back when you shop online at over 2,000 partnered stores.
So what are you waiting for? Make sure you visit the MONEYME website and check them out.
MoneyMe Financial Group Pty Ltd ACN 163 961 236 holds Australian credit licence number 442218.
Featured Image Credit: Supplied.