The key to getting more out of your FIFO bank balance
If you’ve recently started working a high paying FIFO job, you may be excited to be finally earning decent money, however with earning big dollars comes responsibilities.
If you’ve never had a high paying job before, it can be electrifying seeing the huge amounts of money pour into your bank account, and almost always as exciting to spend it. One of the hardest parts of heading towards financial freedom is setting a plan into action from your very first pay. As hard as this may sound, there are many ways you can do just that, as well as indulge a little at the same time.
Adam Truelove, Trading Floor Manager at Learn to Trade, says “Budgeting is difficult, especially if you are used to budgeting from a small salary, and when you have all this extra money in your reach, it makes it very difficult to control yourself. When you are FIFO, when you fly home after a stint onsite, it can be very tempting to spend big when you are home, whether it be out of boredom or because you love having money you’ve never had before.”
The other temptation with high income FIFO workers, is of course taking out finance to buy big ticket items, which can leave you in a worse financial situation than you were in before.
“What if,” Mr. Truelove says, “instead of spending your money on things you don’t really need, or things you will barely even get to use because you work so hard, you could make more money from your extra income, while you are away? Being smart with your money is difficult, but these tips should help you get in front, and stay in front.”
“If you can avoid debt, avoid it like the plague. It’s better to save money and wait until you have enough to buy nice things, rather than borrow it, and be caught out if you lose your job. Sit down with a financial planner, even if it is your scrooge of a dad, and be completely honest about where you want to be financially in 1, 5 & 10 years. Then build a plan that helps you to use your money sensibly,” he explains.
Mr Truelove says that the housing market is also a great way to make money, but only if you want to spend your time off working on it. “There is good money to be made in flipping houses, and if you have mates or family members in the building industry, they might want to partner up for a bigger cut, so you don’t have to do it alone”.
“Always put aside some spending money for yourself, for no other reason but to constrain your spending urges. Instead of spending this money on silly things, invest it into something like stock, or even better, Forex Trading.”
Trading is one of the simplest ways to get good return on your money, and it’s quite exciting as well. Spend a small amount of your time onsite and at home studying up on the ins and outs of Forex Trading, and you’ll be a gun in no time, and well onto your way to financial freedom that will outlast your FIFO contracts.