It’s the end of the year again, that period of time where we start to reflect on what we want the next year to look like. Maybe this year you’ve been able to save more than ever before, or perhaps it’s been a bit of a financial write-off. It’s never too late to start a new habit and, while you can always start at any time, there’s something that feels fitting about starting on the first day of a new year! Set yourself up for success by making goals you know you can achieve and dive into our list of ideas to get you started.
Up Your Savings Game
First of all, identify a goal for your savings. It doesn’t need to be a huge number either. You might just want to save up enough for a bond deposit and a few months rent in your own place. Or, you might want to take the first steps towards something big, like a new car, house deposit, home renovation, or a wedding. Knowing what you’re saving for will help to keep you motivated!
If you found you weren’t quite meeting your saving goals last year, or are trying to up how much you add to your savings account each month, it might be the time for a budget. It takes a little bit of time to start it, but once you know all the expenses you have to commit to, like rent, utilities, transport, and food bills, you can see where the rest of your money fits in. You might notice a lot of unexpected small costs on your bank statement that can add up. Think things like unused subscription services or food delivery packages. You should absolutely still have your “fun” spending allocation, just make sure it’s things you actually use and enjoy!
After that, you can see how much you can commit to saving. Try to choose a reasonable amount, as you don’t want to have to dip into your savings for basic expenses. Trial it for three months and see how you like it – if it’s a struggle, drop it down. If it feels too easy, challenge yourself to put away more in the next quarter.
Minimise Spending
We’ve all made the grand statement that we’re never buying coffee again after realising we’re spending $25 or more every week. Despite the best of intentions, eventually that sweet nectar lures us back to our local coffee shop five days a week! So, instead of resolving to cut out spending altogether, try minimising instead. Limit those extra expenses to treats instead of a daily or weekly ritual.
Maybe you have takeaway on the last Friday of the month instead of every Friday, or limit that daily coffee to a Monday morning when you’re desperate. That way, instead of feeling like you’re missing out, you’ll get to look forward to those things and still see more money sitting in your account!
When it comes to bigger expenses, like new clothes, or hobby gear, press pause on clicking the “checkout” button online. Do an inventory and sort-through of your wardrobe, see if you can borrow equipment if you need it for sports or activities, and save the amount you would have spent if you’d bought those things sitting in your online cart. If you’re still in need in a month or two, like if things are getting worn down or aren’t functional, then you can go back and purchase what you need. Signing up for emails with brands you like also often gives you a discount – make the most of them for anything essential!
Automate Payments
Do you feel like you’re constantly having to pull money from this and that account to pay your bills when they come in? Try automating your payments so they go out as soon as they’re due. This will mean that you’ll never be stuck with late fees, as well as always having an accurate view of how much disposable income you have. There’s nothing more frustrating than accidentally spending that carefully allocated bill money!
Another great move is to automate the transaction from your income account to your savings account – this way, you’re guaranteed to always put the same amount away without being able to talk yourself out of it! After a while, you’ll hardly notice the money coming out, but you’ll certainly see your savings growing.
Get Out of Debt
If those big ticket goals seem a little out of reach, or you’re simply working towards a more balanced financial situation, getting out of any debt you have is a great way to start. Debt can come from a whole lot of places, from student loans or car repayments to credit cards. Paying interest to lots of different institutions can feel like it’s holding you back from clearing your debts and reaching your goals.
For some people, getting a debt consolidation loan can be a great way to go. Simply add up your existing debt to see how much you need to pay it out, and apply for that amount. Not only does this centralise your debt repayments to just one lender, in some instances it can also be a helpful way to reduce the amount of interest you’re paying.
If this sounds like the right option for you, Rapid Loans offers debt consolidation loans tailored to your situation, with an easy online application process and helpful loan consultants. Find out how it works and apply on our website, or call 1300 727 431 to chat to one of our team members who can help.
This is purely an opinion piece and should not be used as a sole source of guidance.