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MELBOURNE, AUSTRALIA, December 15, 2021 /24-7PressRelease/ -- The kickoff to the holiday season combined with relaxed Covid-19 restrictions, eased lockdowns and border reopenings has left many Australians needing a refreshed financial strategy to take into the new year. XO Accounting, the Xero accountant Melbourne can rely on, reveals their best personal finance advice to start afresh in the new year.
XO Accounting emphasises the importance of building a solid foundation for earning and saving money. They assert that the basis for establishing good financial habits is setting aside a certain amount of funds in a savings account and always maintaining or growing that amount, never dipping into it outside of emergencies. XO Accounting explains that a base savings amount will differ between individuals and depend on their various lifestyles, needs and expenses.
Building on savings can seem daunting or difficult, but XO Accounting breaks down two simple ways to grow savings. A regular stream of income can make this easy: the earner can choose a consistent amount – for example, 10% of each paycheque – that will be put into the savings account periodically. The finance experts explain that multiple sources of income can also be helpful, especially for those who don't earn a single, regular income. Other sources of income can come from investments, a high-interest savings account, multiple jobs or a side hustle.
Once a solid amount of savings and consistent sources of income have been established, everything else comes down to being money smart. According to XO Accounting, the keys to making sensible financial decisions are avoiding bad debt and resisting lifestyle creep. Bad debt can be classified as anything that extracts money over the long-term with little or nothing in return, such as credit card debt or overdue fee payments.
Following these simple personal finance tips works to build responsible financial behaviours and increase capital over time. XO Accounting provides financial and resident director services that Australia can trust – contact them today to find out more.
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