Sydney-based financial expert Canna Campbell is known for her no-nonsense approach to budgeting and useful saving tips.
The single mother made headlines across Australia when she saved a staggering $68,000 in just two years thanks to her frugal financing and creative side earners.
She recently took to her official YouTube channel to share advice on how to manage your cash flow and budget by separating your spending into four dedicated accounts.
The celebrity adviser assured viewers that taking control of personal finance will leave you feeling secure and in control of all aspects of your life.
Sydney-based financial adviser and single mother Canna Campbell (pictured) took to her official YouTube channel to share advice on how to manage your cash flow
Ms Campbell said the starting point for serious saving and savvy spending is to ensure you open all accounts with the same bank
THE EVERYDAY ACCOUNT
Ms Campbell said the starting point for serious saving and savvy spending is to ensure you open all accounts with the same bank.
She stressed the importance of having an everyday account with a linked ATM debit card for everyone, irrespective of financial circumstance.
‘This account should be where you allocate money every time you get paid, for your daily, weekly and monthly expenses.
‘This is for your gym membership, mobile phones, lunches, coffees and weekend spending – never use credit cards for this type of spending.’
She also cautioned against using saving accounts ‘floating around in cyberspace’ which you can’t readily access.
‘You should be able to log on to all of your bank accounts through your phone or desktop to see your entire cash flow situation at the touch of a button,’ she said.
Ms Campbell said the starting point for serious saving and savvy spending is to ensure you open all accounts with the same bank which you can easily access through an online app
THE EMERGENCY ACCOUNT
Next Ms Campbell highlighted the need for a ‘life and emergency’ account which she revealed is the area where most of us run into difficulty in terms of debt.
‘Our budgets are not the same month to month which can create a false sense of security if we are not financially aware.
‘You might have a quiet month with low living costs where you find yourself with some extra money left over, and you go out and spend it without thinking of upcoming costs for the weeks ahead.’
The money guru advised using the emergency account for long term expenses, such as quarterly, bi-annual and annual bills.
She recommended keeping roughly $5,000 in this ‘float’ account to ensure you are never ‘rattled financially’.
This should also serve as a stockpile of cash for sudden emergencies.
The money guru recommended keeping roughly $5,000 in this ‘float’ account to ensure you are never ‘rattled financially’
THE LIFESTYLE ACCOUNT
‘Budgeting is not about depriving ourselves or being mean – it’s about setting boundaries and making ourselves accountable,’ Ms Campbell explained.
The lifestyle account should be used in pursuit of a material goal you want to set, such as a new laptop, designer handbag or holiday.
‘It should be a financial goal that’s important specifically to you.’
FINANCIAL GOAL ACCOUNT
The fourth and final account is where Ms Campbell said we should regularly contribute money towards a long-term financial goal such as a home or investment portfolio.
‘Even if you’re not sure what this goal is yet, you should open an account to create intention, purpose and direction for your cash flow. Let it sit there until you know what you want to do with this cash.’