A Simple Guide to Financial Independence

Why This Matters: Dignity, Control, and Peace of Mind

Managing your money is about much more than just numbers. It's about living with dignity, feeling secure, and having the independence to make your own choices. A simple plan puts you in the driver’s seat and gives you confidence.

Remember, financial independence isn't about having a huge fortune. It's about having control and the peace of mind that comes with it.

This guide will show you some easy ways to build that peace of mind, stay safe from scams, and plan for the future.

Step 1: Know Your Money In (Your Income)

First, let’s look at all the money you have coming in each month. This might be from the Age Pension, your superannuation, or any investments.

A Smart Tip: Simplify It!

If your money comes from a few different places, it can be messy to track. Think about having all your income paid into one main bank account. This makes it much easier to see exactly what’s coming in and when. You have one place to look, which means less stress and confusion.

Step 2: Know Your Money Out (Your Spending)

Next, let's look at where your money goes. You don't need a fancy spreadsheet. A simple notebook will do just fine.

Try to group your spending into a few simple buckets:

• Home: Rent or mortgage, bills (like electricity and phone), and council rates.

• Living: Food, car costs (petrol and insurance), and health costs (medicines and appointments).

• Fun: Hobbies, going out for coffee, and buying gifts for family.

At the end of the week, write down roughly what you spent in each bucket. This helps you see where your money is going.

Step 3: The Weekly Check-In (Your Safety Check)

This is the most important step for keeping your money safe. Once a week or once a fortnight, sit down with your bank statement.

1. Look at Every Cost: Read through the list of payments that have come out of your account.

2. Ask Yourself: "Do I know what this payment is for?" You should recognise every shop, company, or person on the list.

3. Look for 'Surprise Costs': Is there a payment you don’t recognise, or a bill that seems higher than usual? These surprises are worth looking into. It could be a simple mistake, or it could be a scam.

What to do if you see something wrong: Call your bank right away. Use the phone number on the back of your bank card. Tell them you’ve seen a strange payment. They will help you figure it out and protect your account. This simple check-in is the best way to stop scams early.

Step 4: The Emergency Fund (For Your Helper)

It’s wise to have a small amount of money set aside for emergencies, like a leaky roof or an urgent medical need. It’s even smarter to make sure your trusted person (your Attorney) can get to it if you’re unwell and can't get to the bank yourself.

• Set Up a Separate Account: Open a simple savings account with a small amount of money in it—just enough to cover an urgent cost.

• Tell Your Attorney: Let the person you appointed in your Power of Attorney know that this account exists for emergencies. They can only use this money for your benefit.

By taking these simple steps, you are taking powerful control of your finances. It's not about being perfect; it's about building a routine that gives you confidence and true peace of mind.

Disclaimer: This guide provides general information only and is not a substitute for professional advice. The information is provided "as is," without any guarantee of its accuracy or completeness.

Any action you take based on the contents of this guide is at your own risk. We are not liable for any loss or damage resulting from its use. Please consult a qualified professional to address your individual circumstances.