5 of the best financial New Year resolutions

By Julie Ryburn
In Home Loans

New Year resolutions are often quickly broken because they tend to be unrealistic. Gym and swim 8 times a week? Not going to happen. New financial resolutions are not much different, but they have a far better chance of sticking if we set smaller goals along the way to support them. For resolutions you can actually keep, here’s 5 of the best.

1. Have clear goals

Take a look at your overall financial health and work out exactly what you are trying to achieve. Write out your goals, and then detail out the smaller steps that will bring them to life. If this is the year you want to save for a house or start an investment plan, set out a monthly savings plan that will make it happen.

2. Start budgeting

This is a no-brainer, but it is a step often skipped. Unless you channel your earnings in the right direction you will never realise the maximum benefits. Examine your incomings and outgoings and understand exactly where you can make real savings.

3. Organise your debt

The best way to start saving is to reduce down your debt – and any interest you are paying on it. Set up a payment plan and commit to it. Once you have paid off anything you owe, all that money can be redirected into savings and investments.

4. Start a savings plan

Many sources suggest saving up to 20% of your salary each month. But if this is unrealistic, anything you can squirrel away is better than nothing at all. Start up an online savings account and set up a monthly debit. Remember, it’s more important to first pay down any debt that is costing you money.

5. Start investing

It might sound like a scary prospect, but with the right guidance and advice investing your money means it will grow at a much quicker rate. Talk to a professional today about finding the right portfolio for you.

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