Home of Slightly Cracked Dreams

In a few short minutes it will be the start of the new financial year. The start of higher pay for hubby, less tax (thank's Mr Costello!), tax returns and bonuses, and the opportunity to start a budget. Again.

As with anything new, the possibilities are endless. All accounts are zero. The whole world (well, year) is before you and you can do anything. Apparently that also includes spending willy-nilly, saving nothing and wondering in six months where it's all gone. So once again we're left asking the question: how to effectively manage our money?

I've always been a rather kinesthetic learner - I struggled at schools that directed learning using auditory and visual tequniques. As a wise man once said "If I hear, I forget. If I see, I remember. If I do, I understand."

So how do you understand financial management? For me, being a "doing" person, I have 13 separate accounts. Now don't worry, I don't pay fees on any of them. But they all have their purpose. I learnt long ago that the best way for me to keep on top of everything was a bills account, and direct debits.

Direct debit everything that you can as soon as possible after the money goes into the account. Transfer money to cover bills to a seperate account, put your savings aside and spend the rest.

So why doesn't it work? I blame the banks (stay with me here). The trend towards redraw mortgages, line of credits, and the concept of living on a credit card, and paying it off at the end of the month. These things just don't work for me. Yes I'm good with numbers, but keeping track of how much I have to spend? Actual savings? Doesn't work.

So this year, I'm going back. Back to the good old days of bills accounts, savings accounts and spending accounts. I want to find myself using the credit card less (and even reduce the balance), and cash more (well, not more, but you know what I mean). I want to have a small savings stash at the end of the year.

A new financial year. Endless possibilities. A blank book. What will you make of it?

Happy New Financial Year!