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. Many people find it helpful to leave room in their budget for discretionary spending, whether that’s dining out, hobbies or other things they 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 set aside 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 – it can make it easier to save consistently. 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, reducing existing debt 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.
Some people explore debt consolidation as a way to combining multiple eligible debts into a single loan. Whether this option is suitable depends on individual circumstances. If you’re considering debt consolidation, it’s important to understand the total amount you owe, the interest rates and fees on your existing debts, and the terms of any new loan before making a decision.
If you’re considering a debt consolidation loan, Rapid Loans offers secured personal loans from $2,001 to $45,000, subject to our credit eligibility criteria and approval requirements. You can learn more about how debt consolidation works or speak with our team if you’d like more information about our loan products.
This article is general information only and does not constitute financial or credit advice. It does not take into account your personal objectives, financial situation or needs. When you apply for a loan with Rapid Loans, your application will be assessed against our credit eligibility criteria. All applications are subject to approval. Terms and conditions, fees and charges apply.