5 financial resolutions to keep in 2015
We all have good intentions with our New Year’s resolutions but how often do you focus on financial goals? Here are a few practical ideas for some good financial habits to make a priority in 2015.
1. Review your financial health – While many people resolve to work on their personal health and wellbeing at the start of each year, try the same with a financial health check. Start by reviewing your spending patterns to see where you can save some money. If you have a term deposit, look at other investments that might give you a better return while interest rates are low. In addition, check your mortgage rate to make sure you’re getting the best deal, and review your insurance so you know you and your family have enough cover in case things go wrong. Consider making an appointment with a financial adviser to really put your finances through their paces.
2. Set some real goals – The best thing you can do when setting your New Year’s financial resolutions is to start with what you want to achieve by the end of the year. Then adjust your budget or behaviour accordingly in order to meet that goal. For example, your goal may be to go on an overseas trip in a year’s time. Your action could be to save an extra amount from your budget each week or to make an investment that will give you a level of income during the next 12 months to ensure you have enough money at the end of the period to pay for your holiday.
It’s recognised that people who talk about their goals and resolutions are more likely to achieve them. Share your key resolutions or goals with someone you trust and check in with them regularly throughout the year to review your progress.
3. Pay those bills on time – Have a history of forgetting to make credit card payments? Consider opting into automatic payments, or try setting up email or text alerts to remind you when your billing due date draws near – whatever’s necessary to get those bills paid on time and minimise avoidable interest payments.
4. Save more in your super – Don’t just commit to saving more for a rainy day. Commit to contributing a little extra to your superannuation in 2015 so you have more money come rain, hail or shine in the years to come. The New Year is also a good opportunity to review your investment options so that you have the appropriate mix of growth and defensive assets in your portfolio for your stage in life and in line with your goals.
5. Read up – Financial education is becoming more accessible and investing in yourself, even if it’s just making time to learn more, is a great step towards achieving your financial goals. There’s plenty of valuable information online these days for your benefit and often for free. So consider adding a few wealth management websites, blogs and books to your holiday reading.