Invest
5 financial goals for the new year
The hangover and food comas are hopefully receding so now is the perfect time to get your financial goals for 2018 in place, the financial services regulator has said.
5 financial goals for the new year
The hangover and food comas are hopefully receding so now is the perfect time to get your financial goals for 2018 in place, the financial services regulator has said.
The Australian Securities & Investments Commission (ASIC) wants Aussies to start the new year on the right financial foot, encouraging them to have a financial plan and get “on top” of their finances.
Senior executive leader for financial capability at ASIC, Laura Higgins said one of the most popular New Year resolutions is to take control of individual finances.
However: “According to research conducted for ASIC, about 44 per cent of Australians say they have a short-term financial plan in place, while only 23 per cent say they have a long-term plan.
“Having a financial plan in place is key to getting on top of your finances.”
Continuing, Ms Higgins said the first step is to identify financial goals and then figure out the steps that will be taken to meet them.
Breaking it down further, ASIC highlighted five financial New Year resolutions to help get finances in shape.
1. Make a plan
Research by the regulator has revealed that 90 per cent of Aussies are keeping track of their finances, with eight in 10 using a budget.
Single parents (94 per cent) and singles living in shared accommodation (84 per cent) were the most likely to have a budget.
ASIC said: “Having a plan in place to manage your money will help you track your spending and understand your money habits. A budget is the cornerstone of a financial plan.”
2. Take charge of your debt
Debt a little bit out of control? ASIC said Australians can take control of their debt by starting to pay off smaller balances on things like credit cards before moving on to other debts.
The regulator explained: “A credit card debt of $2,000 could take you over 12 years to pay off and cost about $2,150 in interest, if you only pay the minimum repayment.”
3. What about creating a savings balance?
A savings balance can give you “breathing space to deal with life’s ups and downs” – perfect for if you’re taking up yoga as your other New Year’s resolution.
Further, a rainy day fund means you won’t need to borrow money if something bad happens.
“If you're looking to save for something specific in 2018, such as a holiday, a home or a wedding, having a savings plan in place is critical to achieving your money goals,” ASIC added.
“A good tip for building up a savings buffer is to "set and forget", by opening a separate savings account and making regular payments automatically via your bank or from your pay.”
4. “Take stock” of insurance
“Having the right insurance in place is a critical part of a financial plan, but it pays to shop around,” ASIC advised.
Continuing, it said it’s critical that users review their existing policies to make sure it fits their needs. If it doesn’t, they should look for a policy that does.
“Make a resolution to compare the policies offered by other insurers when your home or car insurance comes up for renewal to ensure you get the best deal.”
5. Superannuation!
Pointing to ASIC figures that show 77 per cent of Aussies know their super balance, the regulator said people with multiple accounts should consider consolidating them into one.
That move, together with making extra contributions and reviewing investment options will help to “maximise” super.
Spending
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Spending
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
