GETTING STARTED
To get yourself started, break down your bigger financial targets into smaller, more achievable goals so that you know exactly what you want to achieve financially from the year. And if you really want to make these goals stick be sure to write them down, since there’s nothing more helpful than having a visual reminder to keep you on track. So put pen to paper, or finger to smartphone, and get started on your list of goals.
BUDGETING & SAVING
The next step towards a successful year financially is to set yourself a tight, well-rounded budget that will help you to achieve these goals. This will assist you in monitoring your spendings and savings throughout the year, helping you to eliminate any unnecessary purchases of luxury items that may tempt you when your wallet is particularly plump.
A great way to encourage regular savings is to open a high interest savings account, where you can easily deposit money but will have more difficulty withdrawing it. To make sure you’re making regular savings deposits, consider setting up a recurring transfer into your savings account to be made just after you get paid. Just be sure that you’re staying on budget and don’t end up overdrawing!
REVIEW YOUR HOME LOAN & INSURANCE
Saving money doesn’t have to be just about keeping to a tight budget, a great way to save money is by reviewing your insurance and your home loan. Take this opportunity to check your mortgage and insurance policies against the competition to see if you can find a better deal. A little bit of extra work now can mean huge savings in the long run.
When it comes to reviewing your home loan, consider the different rates, fees and features of your current policy versus the competition. If you find a better deal, speak to your lender and see if they can match or beat it, and if they can’t, don’t be afraid to switch lenders!
Review all of your different insurance policies, including both your car and home and contents insurances, taking the time to compare the price and features of your policies against those offered by other providers. Just like with your home loan, if you find a better deal, don’t be scared to make the switch to a different insurance provider.
What you choose to do with the money you save this year is of course up to you, however, there is no investment safer than paying off your debts.
STAYING ON TRACK
When it comes to this, ensure that you are paying at least the minimum on all of your cards in order to avoid default and late fees.
You should then pay off the card with the highest interest rate first in order to maximise your monthly savings. Once you’ve paid off the first card, start to work on your credit card with the next highest interest rate, and continue the process until you’ve paid off all of your cards.
Alternatively, you may prefer to pay off the card with the smallest debt first, working methodically until you have cleared your debt.
Once you have paid off a credit card, you should contact your provider in order to close that card down, as you can otherwise be charged fees and service rates by your provider for a card that you aren’t even using.
