Despite low confidence in personal finances, Australians have commenced the New Year with a positive mind set with respect to the National Economy. The views and opinions of 1,035 Australians were analyzed by Westpac’s 2014 Australia Day Index. It was found that 65% of Australians sampled in the survey believe that economy is presently in a very robust position, while majority of the participants believed that strength of the economy would be sustained. The other 57% are disappointed with their finances. However, surprisingly, overall, optimism is somewhere lacking.
The sole reason of financial uncertainty is lack of adequate opportunities. The gross fiscal confidence is declining. One in every third respondents was anxious about their present day financial condition while bills were the primary concerns all the respondents undoubtedly. Reading the strategy by Melanie Timbrell of the Commonwealth Bank of Australia will help you adopt a comprehensive policy towards saving.
Agenda and Tactics of Savings
The top financial priorities of Australians are saving money, sticking and making a budget, clearing the credit card debts and recompensing the mortgage. Even McGrath Westpac’s Retail Banking General Manager stated the importance of analyzing financial priorities in 2014 for better, safe and prosperous future. McGrath even suggested the tips and hints for budgeting that he summarized in what he calls a ’50-30-20 plan’.
The plan works by devoting 50% of monthly income to stable expenses for example, mortgage, rent, bills and payments.30% should go to elective and unrestricted items, including weekend and mid week dinners and entertainment. The rest 20% is allocated to most crucial aspects of saving, retirements and critical debt management. Adopting some cash management plan for simplifying and streamlining the cash is very effective. Directing your payments in a secure plan is key to save money. Budgeting is very important as it will ensure that you have money when you need money and ensure that you upheld financial discipline.