13 Jan Your New Year Needs a New Budget
January is a fantastic time to reassess your savings goals in the previous year and get yourself geared up for a new, better budget plan.
To do things differently in 2017, it’s important to understand what your goals for the new year are – then you can take the important steps towards reaching them.
For many people, fitness and health-related goals are the main resolutions and they are definitely important but if you focus on your personal finances and better management of your money with the same determination your financial health can also help set you up for a long and happy future.
To make the most of your new year, try these tips for budgeting success:
Create Realistic Financial Goals
If you write your goals down, you are more likely to have the focus and motivation to achieve them. Whether you choose pen and paper or a digital document is up to you but what is important is outlining your aims and having a clear action plan. By breaking your budget down into achievable small steps, it is more likely to work.
Keep Track of Your Financial Goals for a Brilliant Budget
Today’s technology puts the power of budget tracking in the palm of your hands. Do some research on apps that help you track your finances. With a visual reminder of what you need to do at your fingertips, you’ll find it easier to stay motivated.
Make sure you understand why these goals are important and celebrate savings milestones to inspire you to keep up the good work.
Better Budget Success
What level of savings do you need to put your hands on 12 months from now?
By creating a clear budget, it’s easier to see where your money needs to be at every important stage of your savings plan.
Crunch the numbers to get the outcome you need and if you look like falling short, think about ways you can trim your budget expenses and maximise your earnings.
There are many fixed expenses you can’t change (car registration, for one) but there are many other expenses you can shop around for a better deal on, including insurance, utilities, negotiating a better rate on your mortgage, shopping for specials at the supermarket and more. Small savings add up.
What are you saving for in 2017?
Make sure you understand how goals for smaller things ( a new car or a family holiday) may impact on grander savings plans (buying an investment property) and identify what is most important to you – short-term gratification or long-term savings strategies. The two rarely work together so be clear about your goals and work towards them with focus.
By shifting money automatically towards all your fixed expenses and savings goals through a debit from one account to another, you’ll reduce your easy access to all your money and, hopefully, avoid the temptation of spending splurges that get in the way of your long-term vision.
Shop For a Better Deal
When did you last talk to your mortgage broker about getting a better interest rate on your home loan? Shopping around for a more competitive could mean substantial savings.
Check the latest insurance premium deals too but just make sure you don’t sacrifice a great insurance policy for another one that seems cheaper but then has less genuine cover in the unfortunate event of a loss or damage.
Revamp Your Mortgage
The new year is a fantastic time to look at loan fees and features offered by other lenders, then talk to a professional mortgage broker about sourcing a better deal to save you money and time off your repayment schedule.
Small Steps Lead You Towards Your Savings Goals
Many people see a budget as a way to suck all the fun from your life. But that doesn’t need to be the case.
Instead, just look at it as a way to be more in tune with your spending decisions to minimise the money wastage and help you reach a place of long-term financial success.
Just by skipping one takeaway coffee each day, that $3.50 per adds up to almost $1300 each year.
Give it a try. There is much more to gain than there is to lose.
a: 43 James Street, Northcote VIC 3070
*Disclaimer: This blog is generic in nature. All financial and investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of financial or investment action. This is not deemed as advice.