Managing your finances for the first time can be a daunting task. Typically those beginning to look towards financial planning will be those looking to become first-time house buyers and will need to look at their finances closely and develop strategies that will help them buy their first dream home. This is certainly the case in Melbourne where house prices continue to rise and financial planning becomes more and more important. Melbourne house prices have jumped over $100,000 in the last year leaving first time home buyers well out of reach of their first home. Melbourne house prices have consistently risen over the past four years with the median house price sitting at over $850,000, a price that for many young people living in Melbourne leaves them expelled from the conversation of buying a home early in their youth.
Many of those living in Melbourne like Melbourne local Shylesh Sriranjan will know the importance of financial planning in building your future. So for those living in Melbourne, unsure of whether they will be able to buy their first home here is what financial planning consists of and why it will help you reach your financial goal. Firstly, you must stay organised with your finances, planning what you’re going to spend each week is key in maintaining a tight budget. This may mean, luxuries such as dinner at a fancy restaurant, a night out in Melbourne, or trips away and overseas will be expelled for the time being. Furthermore, financial planning also consists of budgeting and maintaining a detailed budget that will keep you on track with your every day finances such as what you plan to eat each day, what necessities you will need such as toiletries or clothing, how you will get to work each day whether that is by car which will include money for servicing and petrol, or whether you save some money and take public transport to work which when living in Melbourne is extremely easy to do. These are the decisions you will have to make when financial planning and these decisions are ones that you will need to stick to through everyday life living in Melbourne. Some of the extras that can be expelled can even include getting rid of a spare car, or something as simple making lunch at home, while these extra finances may seem small in the short-term they will help you get your finances back in line. Every little bit helps.
Now this may seem like a terrifying prospect, where it seems like all the fun will be expelled from your life, however, you can find great guides online such as from Shylesh Sriranjan at Shylesh Sriranjan Financial Planning, where Shylesh provides tips and plans for financial planning. This includes everyday tips on how to deal with your accounts and manage some of the simple finances that have been mentioned above. Shylesh believes in an 80/20/20 strategy that will undeniably help those in Melbourne buy their first house, this means 80% of your finances go towards utilities such as food and transport as mentioned above, 20% of your finances go towards paying back liabilities such as loans and credit cards, and the final 20% goes towards your dream of buying a house in Melbourne. Following this financial planning guide from Shylesh as well making sure unnecessary expenses are expelled will go a long way towards ensuring you are on your way to buying a house in Melbourne.