We are marching through the final few weeks of 2016, speedily heading towards the most expensive part of the year: Christmas and the summer break. Before you get lost in the madness that is likely to ensue, now is the perfect time of year to sort out your finances and learn to manage your money better.
Learn to love budgets
Set a yearly budget, setting money aside for holidays and other big purchases, and reining in any unnecessary expenses. Look at budgets as permission to spend money, rather than restricting your spending.
Review your mortgage
When sorting out your finance, it’s a good idea to review your mortgage and ask yourself whether you’re getting the best deal from your bank. You can also look at fixing your interest rate to help with budgeting as you’ll know how much you are paying each month. If you feel you’re not getting the best possible deal from your lender, it’s worth comparing and shopping around for a different home loan.
Separate your savings
Opening an online high interest rate savings account is a great way to boost your savings. Removing your savings from your everyday bank account gives you time to think about how you spend your money and can help you accumulate your savings.
Review your insurance plans
You can reduce your current spending by paying your insurance through your super fund. There are many benefits to this, including gaining a tax advantage because insurance premiums are paid from your super account, not your after-tax income.
Identify lazy money
This is money spent unnecessarily and for no gain. Do you have a gym membership you don’t use? Get rid of it and save hundreds of dollars a year in one quick swoop. Buy a mobile phone outright rather than being on a plan, as it can save you money in the long term and allow you to pay only for what you use. We understand everyone will probably have different needs. Some people are saving for a house deposit, some for a holiday and others for retirement. It’s about you understanding your needs and getting some advice around your goals. Please contact us if you need further assistance.