The financial adviser shared her top “financial hack” to reach her savings goal by the end of 2021. It all starts with creating a budget and expelling “toxic debt”.
Canna Campbell from Sydney explains what she does each month to increase her savings and investment portfolio and how much “emergency cash” she needs to secure for a rainy day. Did.
“No matter what you do with your savings, it’s important to always write it down so you know how far you’ve gone,” Kanna said. YouTube video..
“It’s very easy to throw a towel and want to give up, but when you look at the notes and see how far you’ve gone, you’re inspired by your actions and continue.”
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The financial adviser shared her top “financial hack” to reach her savings goal by the end of 2021. It all starts with budgeting (Canna Campbell in the photo)
The first and most important thing you have to do to strengthen your personal savings is to get rid of the “toxic debt” you have in your life (Kanna’s photo).
1. Get rid of toxic debt
The first and most important thing you have to do to strengthen your personal savings is to get rid of any “toxic debt” you have in your life.
“We need to get rid of toxic debt before we can embark on other financial goals, such as saving for deposits, starting investments, and saving for retirement,” Kanna said.
Toxic debt can be anything from credit card debt to car and personal loans, postpaid services, and late payments.
‘Prioritize doing this. We budget, look up and fine-tune our living expenses, and use the money we come up with to pay off these debts as soon as possible, “Kanna said.
Financial advisers added that paying back debt is never fun, but “face-to-face with music” can prevent you from returning to debt and repeating history.
How to calculate the required emergency cash
* Budget and identify your monthly living expenses.
* We need enough numbers to live comfortably for a year, so multiply this number by 12.
* This is your personal emergency savings benchmark.
2. Accumulate emergency funds
Once you get rid of your debt, it’s time to boost your “emergency funding”-it will help you professionally, personally or medically from difficult situations.
“We recommend that you use emergency funds to identify your monthly living expenses and calculate how much you need to live comfortably for a year,” says Canna.
“This number varies from person to person, but it should be a benchmark for emergency savings.”
Once you know the numbers, start saving and move to a new account that is different from your daily account.
“Don’t call it’my urgent money’, this is very important,” Kanna said.
“It’s very easy to get distracted when tempted, but if your money is quarantined in another named account, you’ll feel guilty if you delete it.”
“To make a budget, pick up a piece of paper and a pen, write down all your living expenses, and cross-reference with your credit card and bank statement,” Kanna (pictured) said.
3. Create a budget
Then work to save on your financial goals, and for this you need a budget.
“To budget, pick up a piece of paper and a pen, write down all your living expenses, and cross-reference with your credit card and bank statement,” Kanna said.
Stick to this budget and try to stay within its parameters.
If you don’t have a budget, you don’t really have a clear idea of where your money goes.
To set an emergency savings goal, identify the cost of living you need for a month and multiply it by 12 times a year (Kanna’s photo).
4. Create a financial “game plan”
Game planning is important no matter what you do, especially when it comes to savings and investment.
“Think about how you can achieve your goals and what you can do to reach them faster,” Kanna said.
She recommends writing down your goals and game plan-when you look at it all on paper, you’ll feel much more motivated.
“Also see how you might reach your goals,” said the financial adviser.
“What can you sell? Is there a side hustle you can start with or a promotion you might look for? Can you reduce your living expenses or move?”
Make a note of your plans to reach your goals, check your budget and plans regularly, and keep going.
Once you have an emergency savings account and start saving for future financial gain, you should consider starting an investment to actually increase your passive income (Kanna’s photo).
5. Start investing
Finally, once you have an emergency savings account and start saving for future financial gain, you should consider starting an investment to actually increase your passive income.
“Passive income is the key to financial freedom, so nothing is more powerful than opening your own equity portfolio,” Kanna said.
“The more passive income you have in your life, the more your money works for you.”
Kanna has an investment portfolio worth nearly $ 200,000, which allows her to earn at least $ 7,500 a year in passive income. She also makes other investments.
“I built an investment portfolio of $ 1,000 at a time,” she said.
“You have to start somewhere.”
For more information on Canna Campbell, please visit her YouTube page. Here..
Financial adviser Canna Campbell shares her “hack” to help achieve savings goals
SourceFinancial adviser Canna Campbell shares her “hack” to help achieve savings goals