Your personal finance run rate

Australians love their cricket, and even though it's not summer, now is the perfect time to think about our personal Run Rate. In cricket, the run rate measures how many runs per over we’re scoring and if we are on track for a win. Similarly, by understanding our personal finance run rate we can stay on top of our expenses and savings.

?Your personal finance run rate applies in two crucial ways:

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First, let's talk about your regular expenses. This includes essential costs such as rent or home loan payments, debt repayments, direct debits, mobile and internet bills, and the expected amount for quarterly utility bills. By calculating these regular expenses, we can understand how much money we need to set aside into our bills account each month.

Setting aside money for these expenses helps you to be prepared and avoids the stress of wondering if there will be enough to cover the bills. There's a sense of freedom and peace of mind that comes from having a simple approach that you can easily follow each pay cycle.

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The second aspect of the run rate is your savings rate. It's crucial to include a minimum amount of savings that you can stick to without fail. Once you deposit this amount into your savings account, it's important not to touch it unless you have a genuine emergency, or you reach a predetermined savings goal.

Consistently saving helps this habit to become ingrained; and you'll likely feel excited to push your savings rate even higher. Over time, these small, regular contributions can improve your financial security and help you achieve longer-term goals.

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Naturally, these two run rates—managing regular expenses and boosting savings—need to be part of your Spending Plan (Budget). Regardless of your level of income, having a spending plan is essential and helps you to allocate your money effectively.

A well-structured spending plan helps you:

- ???????? ??????????????????: Knowing where your money is going each month prevents overspending and ensures all your bills are covered.

- ???????????? ????????????: With a clear plan, you don't have to worry about unexpected expenses or falling short on your payments.

- ?????????????? ??????????: Whether you're saving for a holiday, a home, or an emergency savings buffer, a spending plan keeps you on track.

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Being the Boss of Your Money is the key to financial security. And whether you’re a cricket fan or not, through understanding and managing your personal run rate, you can control your finances and make sure that you’re on track to win the game of money.? You’ve got this!