Finance New Year Resolutions
With the holidays winding down for another year it is time to start putting those New Year resolutions into action! If your biggest goal over the next twelve months is to buy a property, save for a holiday or to generally improve your financial position there is no time like the present to get started.
Sorting out your current finances is one of the most important first steps to achieving your financial goals. It’s time to pay off your bad debt. Bad debt includes any credit cards and other high interest loans. If you have bad debt across multiple cards and financial institutions you may find it more manageable and beneficial to consolidate. For more information read our article on Christmas, Credit Cards and Consolidation below.
Learn to understand your spending habits by reviewing why you buy things. Do you buy things to make yourself feel better, to meet other’s expectations or to impress people? For every purchase you make this year ask yourself: Why am I buying this? Do I need this? By questioning your motives you will be able to recognise (over time) which purchases you really need and which you could stop and put towards your debts or savings.
Put together a realistic budget and stick to it. If you are unsure where to start use a budgeting tool. Click here to use the Loan Market Budget Planner to give you a clear picture of your current expenses and how much you could be saving. Once you have entered all of your incomes and expenses take some time to review the budget for opportunities to reduce expenses and increase savings.
If you are hoping to purchase a property this year you should begin to review your loan options. Comparing home loans and understanding how much you can borrow will help set your expectations. Make sure your repayments are realistic and that you could afford to make the repayments if something unplanned happened. Talk to your Loan Market mortgage broker about your options.
If you are a home owner, you should take advantage of the current low interest rates to get ahead on your mortgage. If you can afford to pay even $10 a week more on your mortgage you could save thousands in interest over the lifetime of your loan. If you haven’t reviewed your mortgage in the last 12 months you should talk to your Loan Market broker about current offers available.