It’s nearly 2011, so if you haven’t made any New Year’s resolutions yet, I thought I’d be highly original and help you with some financial resolutions.
Don’t keep a lot of money in a transaction account: You’re getting absolutely nothing in interest, well I tell a lie, you’re probably getting something, but usually it’s less than 0.5%.
At the very least, go and find a high interest online savings account and put money there. At the moment, UBank (owned by NAB) is ahead of the pack with a monthly base of 6.01% and 6.51% if you set up a $200 monthly savings plan.
Get rid of that credit card balance: Aggressively tackling debt in the current environment is hard, but on top of what you already owe, consider what it is costing you in monthly interest.
For some people it’s hundreds, or even thousands of dollars a year! Ask yourself, is that better in your hands or being pocketed by a bank?
Understand where your money is going: From time to time I’m sure we’ve all wondered, “where did that last pay cheque go?” So spend a week keeping track of the money you spend, the results may be surprising.
That morning coffee and buying your lunch every day might feel like a necessity, but if you’re broke at the end of the week, maybe it’s time for International Roast and a packed lunch!
Have financial goals: Think about it, saving and paying down debt is a lot easier when there’s a specific reason for doing it. Having a goal and a specific amount of money needed for that goal allows you to set targets and stay motivated.
That way, if you’re aiming for house deposit or a lump sum of money to invest, you can chart your progress along the way and know how close you are.
Happy New Year!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you’d like help with your financial future, we might be Australia’s best financial advisor. We think we’re Tasmania’s best financial adviser and
