This week’s Ask An Advisor is proudly brought to you by Cashrewards

This week’s advisor is Jane Mitchell, from AdviseWise. Here’s what she said in response to Ruby’s question:

With cost of living on the rise many people can agree it’s a painful time for the family.

It's natural to start being concerned about how to cover your monthly costs. Groceries, rent, mortgages are all going up, clients worry their wages aren't covering the increase and they don't have enough savings in the bank.

In times where your cashflow position becomes tight or you want to rein in spending, it is always a good idea to look at your cost of living.

Here are some ways, to help give you back control and reduce your money worries:

• Review your current expenses.

We all think we know where our money is going and what we spend, but the reality can be very different.

• _{How much are you spending on entertainment, dining out, food deliveries like Uber Eats?}

• _{Are there costs, discretionary spending you can cut back on that will ease your cashflow? These add up and could be better put towards savings.}

• _{How often are you shopping online?}

• _{Review your subscriptions, energy, car insurance, internet and phone plans, check are there savings with better deals elsewhere.}

• Make a budget and stick to it. You can do this!

Establish a budget for your current lifestyle, track your spending, reduce your overspending. Look at your bank account and credit card statements, put the expenses into the budget tool and you will easily see where the savings can be made.

• _{What are the direct debits you have coming out of your accounts?}

• _{Set aside a fixed amount from each pay into a separate account to cover your bills, rent and essentials. Reduce the opportunity for overspending.}

• _{By keeping a budget, you are holding yourself accountable and forcing yourself to improve your spending and savings habits, each week.}

• _{Moneysmart.gov.au have a great budget tool, very easy to use.}

• Saving for the unexpected and build a buffer:

Once you have identified things you can cut from your spending, you can build a budget to gradually improve your financial position and build emergency funds for unexpected expenses.

The last thing you can do if you are still struggling is looking at changing your habits. If you routinely buy takeout, go to the movies, drive rather than take public transport, and partake in recreational activities that your budget simply can’t afford consider making changes that better align with where you want to go financially.

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