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
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
Spending
Consumer spending defies lockdown
Statewide lockdowns have not hampered consumer spending, with the latest government data showing Aussies are continuing to spend more on their credit cards. ...Read more
Spending
How a cartel is dictating how much you pay at the pump
Talks among members of the OPEC cartel and allied oil producing countries have broken down, which is leading to skyrocketing oil prices, meaning everyone pays more for petrol, a government body has re...Read more
Spending
Have you noticed the price of your mobile plan increasing?
The consumer watchdog has revealed that the three main telecommunication providers have recently raised prices, meaning millions of Australians are now paying more for mobile services. ...Read more
Spending
Victoria’s lockdowns dampen retail spending
The latest COVID-19 outbreak in Victoria has dented national retail figures, as the economy continues to recover from the COVID-19 pandemic. ...Read more
Spending
It should be easier to fix your phone, Productivity Commission finds
The Productivity Commission has found that it should be easier for Australians to get their smartphone repaired and has recommended changes that include ‘super complaints’ to be reported to watchd...Read more
Spending
You can win free flights for a year, but there’s a major catch
In a bid to keep Australia’s domestic aviation afloat, Qantas is offering free flights for a year for 10 families of four who get the COVID-19 jab, even though the failed vaccine rollout means only ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
Spending
Consumer spending defies lockdown
Statewide lockdowns have not hampered consumer spending, with the latest government data showing Aussies are continuing to spend more on their credit cards. ...Read more
Spending
How a cartel is dictating how much you pay at the pump
Talks among members of the OPEC cartel and allied oil producing countries have broken down, which is leading to skyrocketing oil prices, meaning everyone pays more for petrol, a government body has re...Read more
Spending
Have you noticed the price of your mobile plan increasing?
The consumer watchdog has revealed that the three main telecommunication providers have recently raised prices, meaning millions of Australians are now paying more for mobile services. ...Read more
Spending
Victoria’s lockdowns dampen retail spending
The latest COVID-19 outbreak in Victoria has dented national retail figures, as the economy continues to recover from the COVID-19 pandemic. ...Read more
Spending
It should be easier to fix your phone, Productivity Commission finds
The Productivity Commission has found that it should be easier for Australians to get their smartphone repaired and has recommended changes that include ‘super complaints’ to be reported to watchd...Read more
Spending
You can win free flights for a year, but there’s a major catch
In a bid to keep Australia’s domestic aviation afloat, Qantas is offering free flights for a year for 10 families of four who get the COVID-19 jab, even though the failed vaccine rollout means only ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
