February 2017 Market Update - How to manage your finances better
Did you make a resolution to eat well, get fit or manage your finances better at the beginning of the New Year?
If the answer is yes, you are not alone. A lot of us make resolutions at the start of a new year.
If your resolution was to save more or merely manage your financial situation better, then stay tuned.
There are a few easy steps that you can follow to ensure you turn that resolution into a reality.
The first step is to set yourself a goal that is both specific and realistic.
While it is ok to have a large goal in mind, such as buying a home, you should also set yourself smaller goals that will be easier to achieve.
Once set, it is important to review your goals at least once every six months to track how you’re doing.
The second thing you should do is create a budget.
By creating a budget, you will have full control of your finances and you will know how much you are spending and saving.
Tracking where your money is going also allows you to make clear decisions about your purchases and see what expenses you can potentially cut back on
The key is to not make your budget too complicated.
Your budget can be something as simple as a basic spreadsheet where you note down your income and all your expenses for the month.
The third step you need to take involves reviewing your finances.
Look at your current contracts – like gym memberships and or your phone contract and see if there are easy ways for you to reduce the amount you spend each month.
Another great way to reach your financial goal faster is to pay down your existing debt.
When you pay off non-tax deductible debts, like your credit card or personal loan, you free up your cash flow. This means you have more money in your back pocket each month to put towards your financial goals.
Finally, you should take the time to ensure you are partnering with the right lender for your needs. If your goal is to save more money faster, shop around and see which lenders are offering the highest interest rates on their savings accounts or term deposits.
If you would like more information, call Mortgage Choice today on 13 66 78.