The thing I have not done very well with my finances is organising my cash flow. It is vital to know the comings and goings of your income and expenses, especially if you don't have much to play with as I do.
There are four forms of income (as stated in Andrew Hingston's slides):
1. Salary or Wage
2. Building savings investment portfolio
3. Parents
4. Social Security
Currently, I am working over the summer with Main Roads Western Australia as a student engineer. I am earning approximately $1200 fortnightly after tax. I also receive some Youth Allowance as I am independent for Centrelink purposes. However, I don't receive Rent Assistance at the moment as I am living with my parents over the break. My financial situation over summer is very different to what I experience over the majority of the year. I am in debt to my parents as I have lived above my means in Sydney during the uni semesters every year since I started. My aim is to pay of $3500 of the $8500 I owe to them, as well as having enough savings so that I no longer need to ask my parents for money over the uni break.
Thus, currently my income is 1 and 3 but for the majority of the year it normally is 3 and 4. Option 2 has been non-existent. My aim for the rest of the year is to exist on 2 and 4. I am not financially independent as i rely on my parents for money to help support me.
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