Congratulations! Your road to being a Money Geek may be easier than you think! So you have a positive budget? A positive budget and excess cash flow can mean a couple of things; you have good control of your expenses, or your current situation means your expenses are low. Although each provide you with the ability to save, being able save over the long term will help your financial happiness. Depending on if you simply have lower expenses or if your a ‘good’ saver you want to take an approach that helps you really build wealth! So where do you start? Before becoming a MoneyGeek and taking control of your financial future, you need to work out why you have positive cash flow.
So am I a good saver or do I simply have lower expenses?
Luck alone will not make you a Money Geek, you need a plan. Before you can have a money plan, you need to work out how good you are at keeping to a money plan. By now you should have done a budget; look at your income and expenses. Are you a good saver or just lucky so far?
How do you know? Take your budget and work out if the percentage of your income that you spend on certain types of expenses varies significantly to the Australian average.
The table above shows the average Australian spend versus average earnings for specific lifestyle groups.1 Remember the average is basically the middle. Ideally you want your spending percentages to be below the figures above. To be a good money saver, worst case, it is reasonable to say you shouldn’t be too far over the figures above. If this is the case, then you have positive cash flow and you are a good saver. This is the first step to being a Money Geek and controlling your financial future.
If you have positive income, but your percentages of your spending versus income are much higher than above, then I am sorry, but you are lucky so far! Don’t get a geek wrong, you are in a good position, but a financial shock could bring it all down!
So what to do with my excess positive cash flow?
If you are a ‘good saver’, then feel free to read our tips for excess cash flow. Don’t get complacent, you are a good saver and you have positive cash flow, keep control of your finances and enjoy the lifestyle as a result.
Are you what we would call lucky? This is good too, but you have two things that need to get done! First, read our tips for excess cash flow, but for these tips to be REALLY effective and for you to really realise the potential of your money, you need to see what expenses may not be nessecary right now. Remember, there will be a time for unnesseary expenses, but better at a time when you don’t need to work to spend! The smarter you are with your excess cash flow now, the quicker you can really enjoy!
Don’t forget to share your Geeky Money tips below! Share the wealth and feel the success!
1November 2010 Average Weekly Time Earnings (AWOTE). Calculations based on the following; Lone – AWOTE x1, Couple Only – AWOTE x2, Couple (Kids under 5) – AWOTE x1, Couple (Kids 5-14) – AWOTE x1.5, Couple (Kids 14 – 24) – AWOTE 1.75. Average Earnings as a percentage of average Australian spending (Source: ASIC’s MoneySmart website, moneysmart.gov.au, 6 Dec 13)
About the Author – The Money Geek
The Money Geek is the head money blogger for MoneyGeek.com.au. With over 8 years experience in the finance industry, the Money Geek provides information over a range of topics to help families Australia-wide improve their financial literacy to become their own geeks and take control of their financial future!