By Melina Byrne, the Money Maven
What woman doesn’t enjoy a makeover, especially one that doesn’t cost you money? We asked Vanessa Rowsthorn and Nina Dubecki, the Melbourne-based authors of Money Makeover and the creators of Moneygirl.com.au, for their expert tips on budgeting, saving and investing for financial success.
RESCU: What are 4 fail-proof saving techniques?
Vanessa Rowsthorn (pictured right) and Nina Dubecki (pictured left):
“The dreaded B word
Before you can work out how much you can save you’ll need to address the B word – budgeting. Try writing down everything you spend over a month (and we mean everything – no cheating!) and that’ll give you a good idea as to exactly where your money is going. Next, download a budgeting spreadsheet from www.fido.gov.au to help you sort out a plan. Think of it like eating your veggies – not always that tasty, but you know it will be good for you in the long run.
Pay yourself first
Once you work out what you can save, try setting up a system where a nominated amount of money gets transferred straight from your everyday bank account into a separate savings account just after every pay, before you can spend it.
Save 10%
Experts suggest that if you can save 10% of your pay consistently over your working life and invest it wisely, you’ll be set up for life.
Keep your mitts off
Make a commitment not to touch your money until you’ve reached your savings goals. Ensure you keep your savings in a separate, high-interest-earning savings account and try your best not to touch it.”
RESCU: What are your favourite online resources for budgeting/money-saving tips, etc?
Vanessa Rowsthorn and Nina Dubecki:
FIDO
You can’t beat the Australian Securities and Investments Commission’s consumer website, FIDO, for great advice about everything from choosing a licensed financial adviser to buying a home.
The Barefoot Investor
Money guru Scott Pape has upped the anti with his website that has all sorts of useful podcasts and online calculators.
10 Thousand Girl
The 10 Thousand Girl campaign includes initiatives including finance seminars for young Australian women, with a goal of raising $1 million towards a microfinance program to help women globally.
RESCU: What’s the most important part of a Money Makeover?
a) For a big spender who spends all of her pay cheque?
Vanessa Rowsthorn and Nina Dubecki: It all comes down to prioritising. Living within your means is not an overly fun prospect for the big spenders amongst us, but is vitally important for anyone wanting to make over their finances. Start by writing down what you spend every month – you might be shocked to see exactly where you money has gone. From there you’ll need to set yourself a budget and work out what you can give up (it’s not that hard when you get started) versus what’s important to you. It’s much more fun (and less stressful) being in control of your money than living pay cheque to pay cheque.”
b) For a thrifty woman who has a big nest egg?
Vanessa Rowsthorn and Nina Dubecki: “The most important thing is to work out exactly what your goals are. It doesn’t matter what age you are, you’ll always have certain dreams and objectives. Perhaps you want to take a year long break and live in the Maldives (while they’re still afloat), maybe you like the idea of retiring early, or perhaps you dream of becoming a philanthropist and supporting a cause you care about. It’s all about setting your goals and then working towards achieving them. Having money gives you the freedom to live the way you want—you just have to work out what that is.”
RESCU: How can you maintain your financial plan when life throws curve balls (like career changes, babies, or relationships)?
Vanessa Rowsthorn and Nina Dubecki: “Life never runs in a neat line from A to Z. Your financial plan should never be set in stone and is very likely to change over time. When curve balls get thrown your way, the most important thing is to have a realistic idea as to how they might impact on your finances and re-adjust your goals and budget accordingly (while never losing sight of the big picture).”
RESCU: Why did you create moneygirl.com.au?
Vanessa Rowsthorn and Nina Dubecki: “Our key motivation for putting together moneygirl.com.au was to provide a free, independent online financial resource for women. When we both started investing we found there was very little interesting financial information available to women like us (women on average incomes). So we decided to take action ourselves!
We hope that our website moneygirl.com.au (and now our book, Money Makeover) both help empower women to take control of their finances and become the money gurus we know they can be!
Money Makeover retails for $29.95. It’s available online or it can be found in all good bookstores nationally.
Other Money Maven blogs you might enjoy:
1. The Money Maven finds out how a mortgage broker can save you money on your dream home
2. Count the savings: the Money Maven helps you fill your piggy bank with cold hard cash
3. Recessionista challenge: Save $100 in a week
The Money Maven will be back soon with more money-saving tips @ rescu.com.au/_blog/Money
