Every year, around 45% of us make New Year’s resolutions, many of which relate to getting our finances in order. Unfortunately though, around 22% of these resolutions fail after around a week, 40% after a month and 80% after 6 months! ASICs “Money Smart” website has a huge array of FREE tools & calculators you can use to keep your finance resolutions on track.
- Create a budget
A budget helps you manage your money so that you can cover the essentials and have enough left over to save or play with. If you can find extra savings in your budget, pay more off your mortgage or put those savings into paying off any credit cards or other debts.
Set up your budget to make sure your money goes where you want it to.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner
- Track your spending
Don’t let your money slip through your fingers. It can happen too easily with coffees, lunches and everyday small items.
Track your personal expenses on the go with ASIC’s free and easy-to-use app.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mobile-apps/trackmyspend
Once you work out what you are spending on these items, you can include them in your budget to ensure you don’t overspend.
- Pay off your debts
If you have clocked up some credit card debt or taken out a loan, make sure you won’t still be paying off these debts in 10 years’ time! Make a plan to pay them off quick smart.
See how much you’ll save by repaying your debts faster.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/credit-card-calculator
- Start a savings plan
Whether you are saving for a car, a holiday, a home deposit or an emergency fund to cover you if times get tough, you’re more likely to reach your goal if you have a realistic savings plan in place.
Work out how much you’ll need to save each week to reach your goal.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/savings-goals-calculator
Once you know how much you will save each pay, you may consider things like opening a high interest savings account to help your money grow, or using a mortgage offset account to pay down your home loan faster.
- Take charge of your home loan
When choosing a home loan, it’s important to work out the features you need from your loan and how much it will cost you in fees.
If you’ve had your home loan for a while, you should consider switching home loans and potentially save thousands of dollars in interest or let you take advantage of features offered by another loan. But first, do your sums and work out if the benefits of switching are worth the costs.
- Finally, consider seeking professional financial advice
Financial advice can help you clarify your goals and create a plan to achieve them, whether these goals relate to insurance, super, or investing among other things. There are different types of financial advice options available, and various things you should consider when choosing and working with a financial adviser.
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. We have trusted advisers that we can recommend to assist you in all of these areas.
Article Written by Callinda Beale.
Callinda is a member of the Institute of Chartered Accountants
and a Director of South East Accounting.
