The five money resolutions you should make to kick-start 2019January 10 2019
It’s the start of the year and nearly half of all Australians will have a New Year’s resolution.
Losing weight, getting more organised, spending less, getting fit and saving more are popular choices on the resolution list but a mere one in 10 people will be successful in attaining their goal.
When it comes to money though, a bit of planning and making a few small changes can make a big difference to the success of your year ahead.
Here’s some ideas to get you started.
Know what you spend
Doing the numbers on how much you’re spending is the first step to building your wealth. Don’t forget to include the discretionary spending in your budget.
Don’t just add in the big bills such as insurance, rates or electricity, include those Sunday breakfasts, retail shopping, the gift for kids or grandkids.
If you have weekly drinks with work colleagues or friends, include it.
Get a good idea of what you spend both in big costs and discretionary spending, so you know how to manage your cashflow on a monthly basis.
If you’ve got credit card debt or personal loans, these should be your number one priority.
Don’t just make minimum repayments, start a plan to pay these off.
If you don’t have much excess after your budget, start small. If you can make it work, increase the repayment to pay it off faster.
Either way, getting rid of these expensive debts can save you thousands in the long term.
Plan to save
Once you know how much you’re spending, you can put your excess pay straight into savings and start building wealth.
You can even start by investing it into more growth-style investments such as shares.
The most important thing to remember with investments is that the earlier you start, generally the better off you’ll be. Remember that you are investing for the long term.
Check your super
Superannuation is a great savings tool and warrants its own mention.
Not only can you get tax benefits via salary sacrificing, there are plenty of other government incentives that can greatly boost the amount you’ll receive come retirement.
Consolidating your super into one fund is an additional step that will generally save on administration fees and add up in the long run but do all your checks before rolling as you may have insurance or other benefits attached to your fund.
You don’t have to earn the earth to get ahead but the more you earn, the more capacity you should have to save.
If you really want to get ahead, educate yourself to take advantage of new opportunities. Taking a second job is another way to increase your earning.
Thanks to the gig economy, there’s plenty of online platforms allowing you to provide simple services direct to consumers at your own pace.
With some simple actions, 2019 can be a great year for your finances.
As with all resolutions though, the key is to stick to them. Don’t go too hard, too fast.
The key is to stay the course and you’ll find that the little bits will add up in the long term.