Setting financial resolutions to build your wealth for a prosperous 2017
It’s this time of year that we often look back at our past and into our futures, evaluating our achievements and reflecting on the goals we set for ourselves. Setting yourself some financial Resolutions for the new year is a great way to motivate yourself and set yourself up for an even more prosperous year ahead.
The new year is a chance for a fresh start, and this includes getting your finances on track, especially after the holidays. For many, this time of year can take its toll on our hip pocket, with presents, holidays and back to school fees it’s important to not get discouraged.
. Here’s what you can do to get closer to achieving your financial goals this New Year.
Get rid of your debt
List out all your debt and consolidate it where possible. If it’s credit card debt, look into an interest-free balance transfer. Once you have done this, figure out how much you can afford to pay off each paycheck and stick to that amount.
Sell your unwanted Christmas presents
We’ve all been there, you excitedly unwrap your presents on Christmas day only to find they aren’t exactly what you wanted. So, rather than tucking them away in the back of your wardrobe covering dust, set up a profile on eBay or Gumtree and make some money to put towards paying off your debt.
Cash in your gift cards
Receiving a gift card you probably won’t use is on par with an unwanted present. Cardhub.com.au sells your unwanted giftcards for cash. It’s free to use, you just set the price and you get paid within seven days of the card being sold via PayPal or direct debit.
Create a realistic budget
Start by figuring out your day-to-day expenses. This includes financial commitments like credit card repayments, home and utility bills, transport, shopping and all your daily outgoings. You will now have a clear idea of how much disposable income you have left over at the end of each paycheck and be able to set yourself timeframes to stay on track to achieving your goal. This is also a good opportunity to look at your current spending habits and cut down on any unnecessary costs. Reduce rent, phone bills and car payments where possible.
Setting timeframes is a great way to stay on track to achieving your goal. Stay on top of your progress and check-in on how you’re tracking against your goals. If you have any additional cash put it towards your savings and rejig your plan to reach your goal faster.
Set yourself an achievable savings target
Once you have cleared any debt, you might have figured out you can save 20% of each paycheck. Remember, it’s important you set attainable goals you can stick to. Set up a high interest earning account for your deposit savings with automated transfers each pay. If you have additional money left at the end of your pay cycle you can add to your savings account and reach your goal faster.
Ditch the plastic
It’s important we don’t go through the trouble of paying off our debt only to slide straight back into it. Credit cards tend to encourage unnecessary spending, and if not paid on time the banks can hit you with huge interest and fees. So, once your debts are in-order, ditch your credit cards altogether and live within your means. If you’re not quite at that point in your savings journey, make sure you’re paying off the interest on time at the very least.
Cut down your mortgage costs – refinance your house
If you already have a home loan, now is the perfect time to ensure it is competitive. Remortgaging to a cheaper rate can save you thousands of dollars throughout the life of your loan. If you’re looking to get a better rate but the idea of research and red tape is putting you off, LoanDolphin will do the work for you.