The dawn of a new year sees many people setting New Year’s resolutions and financial resolutions are popular. Here are some ideas to kick your financial resolutions off and set you up for a great 2020.
The beginning of a new year is the ideal time for setting financial goals, here are four practical ways you can make a great start.
- Decide what you want to achieve. January is perfect for taking stock of where you’re at financially, particularly as those post-December bills start rolling in. So perhaps you’d like to start by paying off debt or start a savings plan for a new car or family holiday. The main thing is to be decisive.
The key to achieving any
goal is to be SMART about it:
S – be Specific. Clearly define your goal.
M – ensure it’s Measurable so you know when you’ve achieved it.
A – make it Achievable. Planning to complete a marathon in February may not be achievable if you’ve never run before.
R – be Realistic; could you really lose 20 kilos in a month?
T –set a Time by which you want to achieve your goal.
- Setting a realistic household budget will provide an understanding of your finances and identify areas of unnecessary spending. This will not only assist in balancing your income and expenses but will help you clear debt and allocate money to other financial goals like setting up an emergency cash fund.
Money Smart have a free, online, budget planner which is a useful tool to get your budgeting underway.
- Tidy up your filing cabinet. According to the Australian Taxation Office, you should keep financial records for five years. Shred financial paperwork older than five years and file everything else, including bills, invoices and bank statements. Remember that any filing system you implement should be quickly and easily maintained so you’re motivated to keep your records in order.
your paperwork; start with insurances – life insurance, house, car etc. Are
they current and are you adequately covered? Are your premiums appropriate for
your level of cover?
Assess your superannuation and nomination of beneficiaries. Is your will up to date or have your circumstances changed?
While we’re experiencing record-low interest rates, do a few sums and work out whether you’re getting the best deal on your mortgage. Perhaps it’s time to renegotiate with your lender!
While the idea of setting a new year’s resolution is common, sticking to resolutions and accomplishing them are less so.
With a little planning and organisation, being clear about what you want to achieve, and mapping out how and by when you expect to achieve it, you’ll be giving yourself the best possible start to a successful year.
If you’re not sure where to start, we’re here to help. Why not make 2020 the year to get your finances in order?
This article is for information purposes only and does not provide advice in any form. It does not take into account any person’s objectives, financial situation or needs.
Braeside Wealth and its advisers are Authorised Representatives of Fortnum Private Wealth LTD ABN 54 139 889 535 AFSL 357306