6 financial resolutions for the New Year
New Year’s resolutions are easy to make, but hard to keep. Too often we get stuck in the same cycle with the same recurring resolutions, so why not start 2018 on the right financial foot instead? Have a read of our New Year’s resolution ideas and see how you can kick start your year into gear today.
1.Budget, budget, budget
Creating a budget doesn’t have to be boring, nor does it have to be so overwhelming! Take your income, work out your fixed expenses (i.e. rent, insurance, bills) vs. your variable expenses (dinners, clothes, entertainment), evaluate what you end up with, and see what variables you can cut down on. Things like a daily coffee, takeaway food and dinners out can be easily reduced by making more of these at home.
2.Pay yourself first
To help your savings along the way, make the conscious decision to put a fixed amount of your pay into a savings account the minute you get paid. Aim to do this monthly and as soon as possible. You won’t miss money you don’t see!
3.Aim to get as debt-free as possible
Take back control of your finances by aiming to get as debt-free as possible. The sooner you start paying off your debts, the less interest you’ll accrue. Make it your New Year’s resolution to aim for weekly payments (even though your statement comes monthly, credit card interest is calculated daily1), take cash rather than card when going out and establish an emergency fund that helps you move away from your credit card.
4.Check your subscriptions
From Netflix to Stan, iTunes to Google Play, Hello Fresh to Marley Spoon, subscription services have exploded exponentially over the past few years. Take stock of what you use on a regular basis and be sure to cancel the services you don’t. It’s also a good time to review your memberships and ongoing contracts that you no longer want/need.
5.Contribute more to your mortgage
Considering interest rates continue to stay at record lows, if your home loan arrangement allows, aim to contribute more to your mortgage. Even something small such as an extra $100 a month adds up to reducing the life of your loan and the interest you’ll accrue! You could also take advantage of your Christmas bonus and tax return to pay off more.
6.Address your niggles
You know the one. The niggle sitting at the back of your mind, asking you how’d you keep up with your mortgage repayments in the case of an unfortunate injury/illness, redundancy or even, death. It’s time to address your niggles and consider a loan protection.
An ALI Group Loan Protection Plan provides you with cover across a wide range of critical life events like cancer, heart attack and stroke2. We pay you or your beneficiary in the event serious illness or injury, involuntary unemployment, death and terminal illness. For more information on our cover, please speak to your local ALI-authorised mortgage broker or alternatively, feel free to request your quote here.
2 Pre-existing condition exclusions apply, and a 3 month exclusion period applies to those conditions.
Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.