Don’t just think about getting yourself into shape for the new year, get your finances into shape as well.
As we reflect on the year and contemplate where we could have improved, it’s a good time to create New Year’s resolutions and set up a framework to achieve our goals for the coming year. Some of us may have some bad habits to break and need a refresh on financial literacy. It only takes 66 days to form a new habit and we are here to assist you with your financial resolutions. Following are a few steps towards meeting your financial objectives:
- Assess your priorities – It’s time to consider what you really want. Do you want buy a house, retire comfortably, plan a holiday or save some money for a rainy day? Make a list of your goals and objectives, that way you know what you are aiming for and can set up strategies to meet your target.
- Get out of debt – The sure way to get out of debt is to stop borrowing money and focus all your excess cash into your debts. You will need to have a budget and keep track of your spending; work out how you can cut down on extras and use those funds to minimise your loan or credit card. Start small and you will chip away at your debts slowly but surely. Be realistic with what you can achieve and at the same time create a new routine and be disciplined.
- Save money – Once again, having a budget always makes things easier if you are trying to save money. You may be saving for a deposit on a house, a holiday or building an emergency fund; whatever you are saving for, create a plan that is manageable and stick to it. This may mean you need to put some money in a different account rather than your spending account. Find a strategy to save money such as making your lunch rather than buying it every day or cutting down on alcohol. Wipe the vice so you don’t pay the price!
- Consider super contributions – Your employer puts 9.5 % into your super but for most of us it will not be enough to support twenty years in retirement. Many of us will rely on an age pension as well as our superannuation; the more we put aside for retirement the more relaxed our senior year will become. This can be a great tax -effective strategy as well as an opportunity to invest in your future.
Your money habits will determine your financial future; so flex your will power and make some positive changes. Create money habits that will set you up for life. Staying on track with your financial goals and objectives can reduce stress knowing you are prepared for a rainy-day forecast. Studies have shown that only 8% of people stick to their New Year’s resolution. Review and reassess your finances regularly, plan and work towards a Prosperous New Year and develop strategies for a prosperous financial life.