New Years Resolutions You Can Keep
Time flies when you’re having fun! It’s the end of another decade… Here’s to another 10! Did you make any New Years Resolutions concerning your personal finances last January? If so, how did you do?
While the days leading up to New Years Eve are often spent reflecting on the year gone by, unwinding and enjoying the festive season with loved ones… the days following should be spent reflecting on the New Year ahead, reviewing your financial scorecard for the past year, and looking for ways to improve.
Take control of your future by setting some financial goals this year. Here are some top tips to help make 2020 your best year yet.
Quick New Years Resolution Checklist:
- Make a budget
- Sort out your savings
- Renegotiate your expenses (such as you mortgage interest rate, insurances etc)
- Pay off your debts
- Optimise your superannuation
- Research investment options
Make a plan for your money
To give yourself the best chance of achieving your goals, they need to be SMART: Specific, Measurable, Achievable, Realist and Timely.
With a SMART goal in mind, it’s time to set a plan. For example, if you and your partner want to save $10,000 by the end of 2020, work out how much each of you can allocate to your savings account each pay day.
Start with a budget
Have you ever said to yourself, “I just got paid, where did it all go”? You’re not alone! A budget is the best way to stay on top of your finances and be realistic with your spending.
Start with the essential costs like rent or mortgage, food, bills and transport, then allocate money for any debts you’re paying off. Anything left over can go towards your other money goals.
Sort out your savings
Car rego is due, your electricity bill is higher than usual, and your mate has just asked you to be his Best Man which means… a costly (but epic) bucks party! Where are you meant to come up with this money? We’ve all been there!
Having savings set aside will help cover you in case of an emergency and will also help you reach your bigger money goals. Treat your savings as if it’s an essential bill and simply set up an automatic recurring payment each pay day to transfer money into a high-interest savings account that is easy to deposit into but hard to withdraw from.
Renegotiate your expenses
Unfortunately loyalty is not rewarded when it comes to big businesses. If your assets (car, house, contents etc) have been with the same insurer for a few years you’re probably paying too much. Check online for the latest deals and ask your insurer if they’ll match it. A quick phone call could save you hundreds.
Home loan interest rates are at a record low. Call your bank to find out the best rate they can give you.
You can do the same for you phone, internet, electricity you name it!
If they won’t budge, you can always switch to another provider!
For home loans we always suggest speaking with an experienced mortgage broker. They don’t charge you fees and you should discover the best deals that are most suited to your situation and goals.
Knock out your debts
If you want to get on top of your debt in 2020, break down what you owe into manageable chunks by prioritising what you can pay first.
You could start by making extra repayments on your smallest debt first. Once you have paid that off, move on to the next smallest, and so on. If you start small, by the time you get to your biggest debts you will be well equipped to knock them out.
Another option is to pay off the debt with the highest interest first and so on.
Take charge of your super
Each super fund charges servicing fees which are deducted from your retirement nest egg so if you have multiple super funds, you’re losing money!
Any financial professional will tell you to roll all of your super into one good fund. Get tips on how to do that here
Beware, not all super funds are equal.
Invest in your future
If your debts are under control and you’ve built up some savings, 2020 could be the year to start investing.
In our experience, investing in property has been the most rewarding with the least risk.
We are here to help you make an educated and smart decision. Working with finance and property professionals, we are here to help you from the moment you start saving for a deposit, through to settlement and selecting a tenant.
You can browse a range of properties we have researched and selected as good investments OR we can help you find your dream property. The best part is, we don’t charge you fees!