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The term ‘butterfly effect’ refers to the theory that the smallest things can be interconnected in ways that we can't possibly imagine.

A butterfly flapping its wings can cause enough shift in air and wind currents to cause a hurricane half a world away.  

The entire basis of the Butterfly Effect is the idea that a single event or choice in our life can affect our future and the lives of those around us. The only way to prevent a far reaching chaotic series of events is to stop the original adverse event from ever happening.


Consequently if we want our financial journey through life to be a pleasant one, then we need to manage our financial affairs responsibly. Doing this as soon as possible will have a positive future knock-on effect.

If you could briefly travel into the future what would your family’s financial situation and your quality of life look like? Hopefully you would be financially stress free because you have always used credit wisely; however, many of us use credit limits as targets and then spend the rest of our lives regretting it. The lives we lead are about decisions and consequences, everything we do in life, all that happens defines us, our future and the people around us. It makes no sense for people to bury themselves in debt.

I know we Australians live in the lucky country but we are all responsible for managing our own finances. At the very least this should involve budgeting and having the appropriate working and savings accounts. The important thing is to get started as soon as possible by working out your financial goals, by budgeting and by getting into a savings habit.

• Financial Goals - need not be big but should be meaningful and focused on what you want to achieve. After deciding on your financial goals its time to work out a simple budget.

• Create A Budget - Knowing where your money comes from and goes to is a good staring point towards reaching your goals. After all how hard is it to list your income and expenses, subtract one from the other to see if you are spending more than you earn. Creating a simple budget helps people move from an over spending habit to a saving habit.

• Saving Habit - the most important thing is to start a saving habit immediately, not next month, not next week, not tomorrow but now!. Small amounts saved regularly do make a difference and will help you reach your goals.

Hopefully the choices you make in your life have a positive affect on your future and the lives of those around you. Who would have thought that a butterfly can posses such a remarkable ability, but then so does a personal budget.