Happy New Year! A new financial year means you should look to improve your financial situation, whether it be through investing or improvements or smarter financial practices.
Here are our 6 tips:
- Formulate and stick to a budget
Not many of us keep a budget. You have to be honest with your finances. Open every single financial statement – bank, credit card, and mortgage statements. You will gain a better understanding of your income and expenses. Consider using budgeting software or a budgeting app as there are plenty available that are free these days. Keep an eye on your accounts and stay committed and accountable to your budget.
- Transition slowly
Once you have developed a budget or spending plan that you feel will work for you, consider going slow with the removal of so called luxuries. Gradually reduce spending in critical areas. Sudden cuts to costs often backfire and increase your chances of financial splurges.
- Get ahead in your mortgage
With interest rates at an all-time low, now is a great time to make extra repayments on your mortgage. Also take advantage of your tax refund or work bonus and pay a chunk off your home loan. Even small amounts that are contributed to your mortgage will add up over time.
- Reduce credit card debt
Control your credit, don’t let it control you. There are many providers that offer a low or zero per cent introductory offer for the first 6 to 12 months. If you can find a good deal, move your high-rate debt to that new card and whenever possible, pay more than the minimum repayment required.
- See a Financial Adviser
A financial adviser will help you make the most of your money. They will sit down with you and go through your goals and work with you to develop a plan with practical strategies based on what you want to achieve.
- Remember it’s the little things that count
Memberships and ongoing contracts may only seem like small expenses, but these monthly charges add up over time. Change your mobile phone plan or get rid of the landline account unless you absolutely need it. Look for ways to cut back on utilities such as electricity.
Talk to us today about how we can help you!
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.