3 New Financial Year Resolutions to get you on Top of your Money
Who says the turn of a new calendar year is the only time you can set some resolutions? With money on our mind as one financial year rolls to the next, now is a great time to set some goals for taking control of your personal finances. But where to start? Simply “saving more money” or “sticking to a budget” doesn’t cut it any more – we all need achievable, measurable and time-restricted goals to know how we’re tracking. Here are 5 resolutions you could make for yourself in the 2020 Financial Year, and how to stick to them.
Create (and stick to) a budget
Unfortunately, keeping a mental checklist of your incoming and outgoing cash isn’t quite enough to manage your finances accurately. For a better handle on where your money comes and goes, a personal budget is not only a good idea it’s easier than ever before. With a vast array of apps and personal budget spreadsheets available online (like the one found here), you’ll soon be the master of your financial domain – and importantly you’ll be able to see where you can improve the way you handle money. Setting your budget early in the financial year, and accurately taking into account your bills, upcoming expenses and identifying your unnecessary spending habits could lead to more money in your back pocket sooner than you think.
Pay off/pay down debt
Whether you have a credit card (or several), student debt, or even just a mortgage or car repayments to make, paying down debt where you can is a great way to alleviate financial stress. Factoring your loans and credit cards into your personal budget gives you a solid figure of your current repayment situation – and from there you can set a realistic target around how much more of that debt you want to knock on the head by the turn of the next financial year. This might be to make 5 extra repayments, to reduce your amount owing by 15%, or even to rub out the debt entirely and get it off your plate. Not only will you get the peace of mind knowing you owe less (or don’t owe anything at all), you’ll also benefit from better credit and a fresh, up-to-date perspective on your personal financial situation – arming you with better knowledge with which to make more informed decisions about money in the future.
Perhaps the simplest, most common, and least measurable goal people set for themselves is to “save money”. While in essence it’s a perfectly acceptable resolution, it’s crucial to set some measurable targets to ensure you’re motivated to reach it. This could be to put aside $5,000 for a rainy day fund; raise some extra money for a new TV; or even to save enough to get by for 6 months without bills chewing through your bank account balance. No matter what you want to save for, put a reasonable (but challenging) time limit on it, and revisit it regularly to see how you’re tracking.
Wouldn’t it be nice if all of this (and more) was available to you, in the one place! At McKinley Plowman, our integrated service offering across the firm means your personal finances, loans, and other financial needs are met in the same place, saving you the run-around between different service providers. To see how we can help you reach your goals in the coming financial year, don’t hesitate to get in touch via our website or call 08 9301 2200.
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