We’ve officially entered the New Financial Year and there is no better time than now to tidy up your finances and get yourself on track for the coming year. Here are some of the 10 best financial new years resolutions you can make (none of which contain exercise like a traditional resolution!)
1. Get an overview of your finances
It can be very easy to lose track of where your money is coming in and out when life gets busy. Taking some time to look at all your incomings and expenses and identifying where money is sitting is one of the best ways to start the financial year off with a bang.
2. Set your goals
Now is the time to talk to your spouse about your finances and future money goals so that everyone is on the same page and you can put yourself on the right trajectory to meet your goals and achieve your financial future. A pay rise or a change in budget might mean that paying off your mortgage sooner is an achievable.
3. Review your budget (sparingly)
Don’t make the mistake of cutting out all luxury expenses if you are needing some extra cash – this can lead to splurging and overspending. Instead, take a step back and look at where you can cut out unnecessary expenses, avoid fees, or change to a cheaper provider. Just like a New Year’s Resolution, going cold turkey rarely works. For a resolution to succeed, you need to plan it out carefully and ensure you are taking small steps to achieve your goals.
4. Tackle your debts
After reviewing your budget, you might find yourself with a bit of extra cash in your pocket. Use this to start paying off credit card debts as soon as possible to avoid high interest rates.
5. Know your credit rating
A good credit rating makes it much easier for you to access financial products and get better interest rates. You can check your credit rating at veda.com.au. There are two main ways to improve your credit rating:
- Paying your bills on time
- Reducing your credit card balances
6. Set aside some money
Things will inevitably go wrong at some point. You might need to fix a leak in the roof, your car may need repairs or maybe your water bill is higher than usual. Set up an emergency fund so you have extra cash when the unexpected happens.
7. Update your will
If something happens to you, it is important that your will and estate plan reflects what you want to happen. Even if you think you have no assets, it is important you ensure that your beneficiaries are up to date so that your super and insurance go to the right people.
8. Check your insurance policies
Now is the time to check that your life insurance policy is sufficient to cover your income should something happen. You should also review the policy itself to ensure you are adequately covered.
9. Get ahead in your mortgage
Interest rates are at an all time low and some are predicting that they will continue to decrease. Now is the time to make extra repayments on your mortgage where possible. You may think that small amounts paid into the loan may not make a huge difference, but they can add up quickly!
10. Talk to your financial planner
Now is the time to talk to your financial planner to review what your short and long term financial goals are. From there, we can look at updating your financial plan so you stay on track for your dream retirement.
Contact BIS Cosgrove today and let us be your financial personal trainer! Happy Financial New Year everyone!