Hi everyone,

Just a quick post to say as of Monday I now officially have a Bachelor of Business (Entrepreneurship). This adds to the many other qualifications I have.

I have also started working for Business Development Company. For those of you who have businesses that are looking to grow rapidly you might like to check out the variety of services we offer.

There will be a post coming for you soon but just thought I'd let you know some of the interesting stuff that has been happening in the last month or so in my life.

An important thing to remember as the year comes to an end is that it is far better to finish existing commitments then it is to make new ones. If you have not yet completed new years resolutions you set almost twelve months ago, it would be far better to spend next year continuing on these goals as opposed to setting new ones.

Best,

Josh 

Hi guys,

I've recently been doing a lot of study on personal finance.

As I finalise my degree and commence full time employment again, I've been spending a lot of time reading about money.

Though I won't be starting on a million dollar salary, I believe it is important that I get my finances in order while I'm young. I've read and learned a lot, so I thought I'd share some of the advice I've picked up.

Disclosure: I am not a financial expert, and am not giving advice. I am merely sharing the things I have learned while reading and applying tips to my own life. You should always seek the advice of a financial professional before making financial decisions.

The books from which I picked up the following tips include I Will Teach You To Be Rich by Ramit Sethi; The Barefoot Investor by Scott Pape; and Australia's Money Secrets Of The Rich by John R Burley.

QUICK PERSONAL FINANCE TIPS

1. Setup a savings account. If you don't have an account for savings outside your regular checking account, you should set one up. Look for one with a high interest return and no fees.
2. Build an emergency fund. Begin by working towards saving $1,000-$2,000 as a security buffer. Keep this in a high interest savings account only to be used in the event of an emergency (i.e. you have a car accident, your washing machine breaks down, etc.). Continue to gradually increase this account over time.
3. Track your expenditure. Spend 30 days documenting everything you spend. At the end of the 30 days, analyse your spending to see where money can be saved. Make any necessary changes to your spending habits.
4. Create a list of any debt you have.
5. Begin to allocate a portion of your income (10% seems to be the recommended amount) to repaying principle to your debt. This is on top of the usual payments of interest/principle and interest you make. Begin with the highest interest debt first. Once completed, move on to the next debt, paying the original 10% plus the amount you were originally contributing to the previous debt to the second. Continue this process until all debt is paid off.
6. If you don't have debt, or pay it off, contribute money to investing. Initially, you should focus on long-term investments, such as additional superannuation contributions, Index funds, etc. Start small (all three books recommended allocating 10% of income to investments in this category).
7. Develop a list of long-term savings goals. Contribute a portion of your income to each of these goals. Any savings towards these is better than none at all.
8. Focus on the big wins. Don't get too stressed if you spend $5 on a coffee. Focus on making changes to the big wins, such as car and house purchases, rent, insurance, mobile phone purchases and plans, eating out too much, etc.
9. Find ways to increase your income. Learn about negotiation and aim for a 5% raise. Sell some things on eBay. Consider doing some extra work or starting your own business in your spare time outside of work hours. Tutor some children in subjects where you have knowledge. The options are limitless. There is a limit to how much you can reduce your expenses, but no limit to how much you can increase your income.
10. Follow the important rules - one step at a time and start small. Don't try to rush things. Focus on big wins but build on small successes. A person who increases their income by $2,500 at 25 will be able to earn an additional $105,000 over the next 42 working years until retirement at age 67.
11. Develop a plan. Sit down (either on your own or with your partner) and develop a plan for where you want to be financially in five years time. It's important to determine where you are going so that you don't just keep going around in circles. You only get one shot at life, so commit to making the most of it.
12. And finally, give something back to the community. A lot of churches and books suggest donating 10% of your income to charity but if you can't do that then consider donating time or as much as you feel inclined to help others in need.

Hope this helps some of you get to your dreams and financial goals that much quicker.  If you have any of your own financial tips you want to share, send am email to josh@joshmoore.com.au and title it FINANCIAL TIPS and I'll include them in a future post.

Best,

Josh

P.S. Take action now. Setup a savings account online or with your bank with as little as $10. It's the small steps today that make the big changes to your life tomorrow.