Skip to Content
Article image for Financial Fitness Challenge: Week 1 - Evaluate your finances

Posted by LLL

Date posted:

Before we find out where you want to be financially, let’s find out where you are – right now. It’s time to evaluate your health, fitness and finances. If you were considering your own health and fitness, any personal trainer would tell you to start with a low amount of exercise and build your way up… If we use exercise terminology, well that just wouldn’t be good enough. You will need to start with 20 burpees without a break and dive into the deep end of getting yourself financially fit. Yes, the first stage of this six-week challenge will be the hardest, but once completed, will you have a greater understanding of your finances, enabling you to plan for the next steps.

Ready?

Let’s do it.

Let’s start with the total of your annual income.

When we say annual income you might need to take into consideration your combined income, including whether you are in a joint, de facto or married relationship, or with or without dependents. Depending on your joint/separate holdings, you might be able to complete this health hustle to work out your wealth as a couple, family or fully independent person.

Grab a pen and paper, jump on a computer or jot notes on your phone. Either way, you will need to run a spreadsheet of all your finances. A calculator would be handy too. List the total value of all your income over a 12-month period (say Jan to Dec), including:

  • Net salary or wage income (after tax has been deducted)
  • Interest earnt from savings accounts
  • Dividends and credits from shares, stocks and bonds
  • Income from a property such as rental or accommodation
  • Any income generated from assets
  • Passive income from hobbies or side hustles, etc
  • Welfare payments

Phew. Well done so far, we hope you don’t have a stitch. Now that you have looked in every nook and cranny and under every rock, you will have a greater understanding of your total income.

Let’s flex that financial fitness in week two with debt and liabilities (yuck).

Week 2

Here’s your challenge for week one: add $5 a week to your savings account. By adding $5 a week to your savings, you will have an extra $260 over a 12-month period plus any interest earnt!

The LLL prides itself on providing savings accounts that are simple to operate, with a variable interest rate and no fees or charges. The LLL has a variety of savings accounts: personal and joint accounts; guardian accounts for children; and business accounts, including for self-managed super funds and not-for-profit organisations.

As an Authorised Deposit-taking Institution (ADI), the LLL is regulated under the Banking Act and by APRA.

This advice is general in nature and does not take into account your personal situation, needs or objectives. Please consider the Disclosure Documents to decide if this product is right for you.

View similar posts categorised as: Home page Family Budgeting Tips