How can I manage my money better?

Answer

Managing your money better is all about making the right choices. The choices you make about how to spend your income can affect whether or not you meet your financial goals.

Thinking in cash buckets

A good place to start is to sit down and work out what you spend your money on. To make this easier, think in terms of ‘cash buckets’ for different expenses.

So you might have buckets for:

  • day-to-day spending on groceries, petrol and entertainment
  • regular payments such as your mortgage, insurance premiums and utility bills
  • long-term goals such as holidays, a new car, or your retirement.

But keeping track of what’s going out of your accounts can be time consuming. The AMP money manager tool allows our customers to gather data from over 200 different financial providers to our secure online site. What’s more, it also automatically categorises your transactions, which makes tracking your incomings and outgoings easy. Simply log into My AMP, select the 'Manage non-AMP accounts' tab and then add your account login credentials from other financial institutions.

Setting up a budget

A budgeting tool, such as our budget planner calculator, can help you build a budget and get a better understanding of your finances. By adding your income and expenses, and how frequently you earn or incur them, you can create a view of your total weekly, fortnightly, monthly and annual income and expenses.

If you’re an AMP customer, you can also use our money manager tool to automatically create a personalised budget based on your transaction history. If you’re not an AMP customer, you can see how money manager works after using the goal explorer tool.

Once you’ve worked out where your money is going, you can start making better, more informed decisions and focus on your goals.

Saving for your goals

Start by setting your saving goals and to ensure you’re disciplined about saving. It can be a good idea to treat your savings like any other bill by setting up a regular automatic transfer on the day you get paid.

The AMP Bett3r account – which features three linked sub-accounts – makes automated saving easy. You can set your goals, how much you need to save to achieve them, a timeframe, and automate your payments to keep you on track.

Becoming a smarter saver

If you’re looking for ways to save extra money, there are also plenty of quick and easy money saving tips to help you achieve your goals sooner, including:

  • write (and stick to) a grocery list
  • pay your bills on time - you can sometimes get a discount and will also avoid late payment fees and interest
  • take your lunch to work
  • cancel memberships you don’t use
  • pay your credit card off in full every month and try to only use it in emergencies
  • plan how often you will eat out within your budget and stick to it
  • give up expensive habits, such as smoking.

Our how to save page has plenty more tips about good saving habits. And don’t forget to set some money aside in an emergency fund to deal with any surprise expenses!

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Important information

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Any advice in this page is general in nature and is provided by AMP Life Limited ABN 84 079 300 379 (AMP Life). The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters. AMP Bett3r Account is issued by AMP Bank Limited ABN 15 081 596 009, AFSL 234517. Consider the terms and conditions available on request by calling 13 30 30 or at amp.com.au/bett3r and whether this product is appropriate for you. Fees and charges apply.

Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any decision. Except where liability cannot be excluded, AMP does not accept any liability for any resulting loss or damage.