Invest
How can I get financially fit this year?
After a month or two, those new year’s resolutions made back in January have all but faded away. If you’ve let your financial health fall by the wayside, there’s still plenty of time to get back on track.
How can I get financially fit this year?
After a month or two, those new year’s resolutions made back in January have all but faded away. If you’ve let your financial health fall by the wayside, there’s still plenty of time to get back on track.
It’s a new year and that means a fresh start. While there is no time like the present to get your money in order and start working towards a financial goal, if you need to pick a time of the year to get started, the new year would be it. To you, this may be about putting in more effort to save, paying off debt, buying your first house or tidying up loose ends like wills, super and insurance. Whatever financial new year fitness you’re aiming for in 2017, here are our tips to set you up for success and help keep you on track.
Identify your goals
If you don’t know what you’re aiming for, how can you achieve it? Your first step in getting financially fit should be setting a goal. It could be saving for an overseas holiday, a car or a house, or it could be paying off debt. Whatever it is, make sure your goal is realistic. If you can’t realistically achieve your goal in 2017, break it down. The sooner you start, the easier it will be to achieve your end goal.
Understand your spending habits
Understanding your habits is key to changing them. Start evaluating how you spend your money so you can see where you’re overspending and identify areas where savings can be made. Once you establish how much you spend on basic expenses, it’s easier to see how much you can realistically save towards your financial goal.
Break it down
Saving $150,000 for a house deposit may feel overwhelming and as though you’ll never get there. But if you break this goal down into bite-sized pieces, e.g. 30 parcels of $5,000, it will feel much more achievable. You’re also more likely to get there faster as you’ll pay more attention to the smaller changes you could be making to reach it and you’ll be continually motivated as you achieve each milestone.
Think outside the box
As the saying goes, “If you always do what you’ve always done, you’ll always get what you’ve always got”. If you’ve struggled to get to where you want to be financially, it may be time to look at alternative ways to get there. Simply ‘trying harder’ is not going to bring you results. Instead, consider cutting expenses, such as giving up your morning coffee, bringing your lunch from home or swapping your car for a bike. You may want to consider boosting your income by putting your home on Airbnb, using your skills to pick up part-time consulting work or getting a higher paying job. Or perhaps reducing fees, subscriptions or speaking to a financial adviser about ways to reduce your taxes.
Leave room for pleasure
Just because you’ve set some solid financial targets doesn’t mean you should give up on life’s pleasures. Life is a journey and you’re more likely to give up on your goals if you don’t allow yourself to have fun along the way. It’s about balance and moderation. Spend less, earn more. Focus on value rather than absolutes. And reward yourself when you hit your milestones.
Ask for help
Many of us start the year with good intentions, but things often get in the way as the year progresses. Financial planners can help keep you on track to achieve your goals. Once your strategy is in place, they'll keep you accountable, ensure you hit your milestones and help you overcome any challenges along the way. Some of the areas you should consider focusing on in the new year include:
- Gaining direction and building a financial strategy;
- Saving to buy a property (home or investment);
- Creating and maintaining a budget;
- Paying off debt;
- Consolidating multiple super funds and getting better returns; and
- Putting a will or estate plan in place.
Brenton Tong, director, Financial Spectrum
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
Spending
How are Australians spending stimulus money?
Australians have received an unprecedented amount of cash amid further government stimulus, new research has revealed. ...Read more
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
Spending
How are Australians spending stimulus money?
Australians have received an unprecedented amount of cash amid further government stimulus, new research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
