We have all felt the cost of living going up in the past few years and with raised interest rates, lettuce prices soaring and electricity bills making you want to start a candle-making business.

According to the Australian Bureau of Statistic’s most recent report on Monthly Household Spending, non-discretionary spending is up by 17.5% while discretionary spending is up by 5.8% in the past year, which is why addressing your cash flow needs has never been more important.

So let’s talk a little bit about cash flow.

When we refer to cash flow, we are talking about the flow of cash coming in and out of your accounts each month. Ideally, you want to increase your cash flow so that you have money for day-to-day living as opposed to all your money being tied up in bills.

With spending going up across the country, it’s important to keep an eye on where your money is being spent. If you haven’t already, take some time to go through your accounts and transactions to determine how much money is coming and going out.

Start by carving out some time to go through your bank statements and note what your monthly income is. Include any benefits you are receiving, investment income, and income from other members of your family.

Next, look at your non-discretionary spending. This includes bills, from water to electricity, insurance, and mortgage repayments. Make sure to list areas of non-discretionary spending, noting the total amount going to each bill. You might even note when these payments come out if you have set up a direct debit. This information will help you budget or allocate money for bills each month.

Finally, look at your discretionary spending. This might be a bit of a shock if you are used to tapping your card and going, but spending money on entertainment, eating out, coffee, and more without setting any sort of budget, can add up quickly. You should also include any hobbies, or subscription services you subscribe to.

Once you have worked out where your money is being spent, you can then start to break down each area, determine a suitable budget and set savings goals.

Now that you’ve gone over your finances, and worked out a budget and any savings goals, you can start looking at your non-discretionary spending and discretionary spending to determine areas you can cut back on or save. When it comes to discretionary spending, it’s a bit easier to determine areas of overspending and set budgets but remember to keep your budget reasonable so that you are more likely to stick to it. Don’t vow to never buy a takeaway coffee again, but instead look at making your own at home, or cutting back on two or three coffees out per week. If you enjoy going to the movies with your family each week, look at going once a month or swapping one of your outings to stay in and watch a movie as a family, making your own popcorn, and choosing a film to stream.

Now you might be thinking that when it comes to reducing non-discretionary spending, nothing can be done. However, we are here to tell you that you can start saving just by picking up your phone and calling your SWB broker, your insurance company, or your internet provider to negotiate a better deal. At SW Brokerage, we can call your bank on your behalf and negotiate a better rate for you, saving you thousands in interest each year. We do this for our clients all the time. So far we have saved our clients $465,000 and the total keeps growing up. You can do the same with your other providers. Ask them what kind of deals they are offering and what they can do for you.

At SW Brokerage, we are refinancing experts, here to help you manage your loan and ensure your loan is still the most suitable loan product for you. If you are finding that your debts are getting out of hand, you can speak to one of our SWB brokers about refinancing and consolidating your debt. Debt consolidation simply bundles your debts from car loans, medical or personal loans, and more in with your mortgage to create one simple and easy repayment, instantly freeing up your cash flow and relieving some of the pressures of managing multiple loan repayments and bills.

Our SW Brokerage brokers are experienced financial specialists who can help guide you as you navigate managing your finances. We’re here to provide guidance and support so that you can reduce stress and pressures around your finances and get back on track to grow your wealth and live your best life.

Contact us today to learn how we can help you increase your cash flow each month.