Have you been thinking... “Where on earth has the year gone?” A new year is the perfect opportunity to set new goals to achieve. We've outlined some ideas that you may like to consider when reviewing your financial goals.
Update / create a budget...
Take some time to go over your current budget or put one together if you haven't already. This will help you to have a clear idea on your current financial situation and find out if you're spending too much in the wrong areas.
You can then look ways to improve and save more money. Our FREE Budget Kit is the perfect tool to create an effective budget plan.
Save 10% of your earnings...
Setting a savings goal is always a good idea so you can have funds when you need them. Set up a direct debit into a separate high interest savings account to avoid unnecessary and emotional spending temptations.
ING Direct's Savings Maximiser is a great option for those looking to maximise their savings.
Make extra payments on your mortgage...
Making additional repayments to your home loan more frequently can make a huge impact on the amount you will repay over the term of your loan.
For example, the repayments for a $400,000 loan with an interest rate of 4% over 30 years will be around $881 per fortnight. By making repayments of just $100 more per fortnight, the loan can be repaid in less than 25 years and save over $57,000 in interest.
You can learn some great strategies in our FREE 7 Day "Reduce Your Mortgage" Course.
Pay off your 'BAD' debt first...
‘Good’ debt is used to purchase assets that are likely to earn income or increase in value over time - assets such as your house or an investment property. ‘Bad’ debt is used to buy goods that devalue, such as cars and TVs.
If your current debt is mostly bad debt, then aim to pay off the credit card/loan with the highest interest rate first. Once paid off, allocate that amount to your next debt until it has been paid off.
Buy your first home or another property...
Buying a home is a great achievement and can be a smart financial investment. Why not set a goal to plan your journey to home ownership or consider buying an investment property?
Our free Home Buyer Starter Kit is a handy tool to help you get started.
Look for ways to save or earn more...
There are only two ways to improve your financial situation – either earn more or spend less. If your budget is already cut to the minimum, think of some ways to increase your income without having a high impact on your lifestyle.
Maybe you have items you no longer use that you can sell? Are your children working and able to make rental payments? Do you have spare time available that you can dedicate to extra work?
Teach your kids about money...
It’s never too early to start creating good money habits to help your kids with their financial future. By teaching your kids about money, they will be more likely to make smart financial decisions and understand the importance of saving.
Review your super...
You may want to review your current superannuation and find out if you have any potential ‘lost’ super from previous employer contributions. If you have multiple super accounts, consider consolidating them into one.
Make sure your investment risk profile matches your current retirement timeline and consider speaking to a professional to help you.
free starter kit!
Considering home ownership? Our FREE Home Buyer Starter Kit is full of educational topics that will enable you to take confident steps forward as a home buyer. Get your free copy today!