It’s always great to start the new year with a clear focus on the goals you wish to achieve for the year. It’s the perfect time to run a financial health check, this gives you the information you need about your incomings and outgoings to help you achieve those resolutions.
The key is that your financial goals need to be clear of constraints and simply come down to what’s important to you and how you want to live your life moving forward. Then it’s a matter of breaking down each goal into short-term, medium and long-term, so that they’re more achievable.
Here are some resolutions that will make a huge difference to everyone’s finances in 2019;
- Shred your debt.
Most of us have a credit card or two laying around, but carrying high interest debt or personal loans without making additional payment to pay them off quickly will keep you stuck in financial limbo. To help clear your debt faster we suggest rolling them into one card/loan and focus everything on that. Cut back on your non-essential expenses and set up a repayment plan. Perhaps even have a New Year clear out and sell unused items to help pay the debt off.
- Scrutinise your utility bills.
It’s not really an exciting way to spend an evening, but go through the bills and ensure that you’re getting the best deal possible. Maybe tackle them one at a time, with a glass of wine. We were amazed how much money we saved by looking at our health insurance, just by reviewing our policy. Sometimes they have deals for new customers, why not ask if you can get that deal too.
Sometimes the figure could seem small, but a little here and a little there can add up. My Great Aunt always had a saying ‘mind your pennies and the pounds will mind themselves’.
- Aim to save 10 per cent
Sometimes that’s easier said than done, especially if you’re already struggling to make ends meet. Do a household budget to see where your money is going, you might be surprised. Then challenge yourself to reduce one of these non-essential costs. Put the amount you can save in a separate sub-account that you can’t easily access and watch it grow. Many people find if this amount is automatically transferred when their pay comes in, they don’t even notice that it’s gone.
- Have you thought about what if?
I know it’s not a nice thing to think about, but what would you do it you had an accident tomorrow and couldn’t work for a year? Or even worse, would your family be financially ok if your accident was a fatal one? No one likes to think about these things, but it pays to be prepared. Have a look through your different insurance policies and ensure that you’re not missing anything and that you’re covered for enough. Make sure you look at the insurance in your super fund as well.
Remember that we’re here to help too. We’ll take care of ensuring that your Home Loan package is the most competitive for you. If you need any extra help call MC Mortgage Solutions on 1300 633 667.