When Jo Burston was 32 she owned twelve properties and today she’d be one of the smartest girls in the room when it comes to money matters.
“When I was 21, I bought my first property,” she says, adding that holding $2-million in mortgage debt didn’t faze her.
“The debt was serviceable, so I never worried.”
Burston is a risk taker and big on taking advantage of tax breaks to build wealth.
“If you really sit down and look at the negative gearing and tax framework it is set up for you to succeed.”
But where she doesn’t take risk is with credit. “I never use credit cards as a debt vehicle, only a cash flow vehicle. I always pay the balance by the due date.”
Burston believes that cash is king and having some emergency savings is important, even if it starts by throwing your loose chain in a money jar.
On business, she advocates building wealth inside and outside a company.
“If you do that simultaneously, it means that if one doesn’t work out, you always have a safety net.”
When it comes to investing in any asset or business, the key is to understand what you’re investing in, and if you don’t understand it, don’t invest in it!
Lea Schodel is another smart woman to take inspiration from. She’s a financial planner and social entrepreneur who’s founded the Mindful Wealth Movement to help vulnerable women.
She says the best money advice she’s ever been given is to make saving a priority, and not an after thought.
“If you want to make saving a priority, you need a saving mindset.”
The saving tip is: Try approaching managing your money like this: Income – Savings = What’s left to spend.
Schodel is also big on starting small, and just starting!
On the issue of debt, she’s not big on using credit to pay for lifestyle purchases such as eating out, coffees, shoes, shopping and holidays.
“These might restrict the lifestyle you can have in the future,” she says.
Fellow entrepreneur and shop women’s brand advocate Jade Collins, of Femeconomy is one for living within within her means and having a plan.
“I always plan my shops and buy when the things I need are on special.”
Taking this approach means avoiding convenience shopping until you use what you’ve bought.
“When it comes to groceries, it also means planning your meals and avoiding food waste.
Statistics show that one bag of the weekly shop goes into the bin – Imagine picking up a bag of groceries, and literally chucking it out!
“Buy clothing on sale, and for kids always buy in the next size or two up, especially for basics,” says Collins.
“I also like to buy basics such as underwear, socks and t-shirts in bulk when on sale.
“Look out for the big sales at David Jones and Myer where you can buy higher quality items that will last longer,” she adds.
Accepting hand me down clothing and baby accessories can also be a huge saving and it’s also nothing to bulk at if it saves you a pretty penny.
If you’re on financial struggle street, the final piece of free advice is to look at ways to either find or make more money.
This is when you can do:
- A financial audit. Go through bank statements, superannuation, bills and subscriptions and work out where savings can be made. Do you really need Netflix?
- Invest in yourself. It might be time to do a new course and up skill for a better paying career.
- If you’ve be been putting off asking for a pay rise, just do it!
This article was first published on whimn.com.au.