January 21, 2014
Top savings tips for 2014
A New Year is here and with it comes the opportunity to get your finances in order. If you are anything like me, you may have already made a New Year’s resolution to eat healthier and exercise more, so why not resolve to whip your finances into shape as well.
Growing your savings is no easy feat, but a little bit of careful planning teamed with a simple budget can go a long way towards helping you reach your financial goals in 2014.
Here are five tips to help get your finances in order this year:
Avoid unnecessary spending: Evaluate your regular outgoings and identify any unnecessary costs which you can reduce. Cutting back on guilty pleasures like Friday night takeaway, premium television packages or even takeaway coffees can lead to significant savings in the long term.
Think small when budgeting: Planning ahead with your finances for a full year can be daunting. Instead, budget monthly or in accordance with the length of your pay period. This will allow you to amend your budget fairly quickly if you over-estimate or under-estimate certain expenses.
Update your savings account: Research the benefits offered by savings accounts across various financial institutions. Switching banks and opening a new account with a lending institution that offers lower fees and higher interest rates will allow you to save more in less time.
Pay off and cancel your credit card: Credit card interest rates are notoriously high. Constant use without paying off the full balance at the end of the month can lead to significant debt. Many people get stuck using a credit card and struggle to break the cycle as interest continues to accrue. Make paying off your credit card a priority this year, and cancel it as soon as possible. Debit cards are an ideal alternative, providing a similar level of protection for online and over the phone purchases, without the significant interest rates.
Compare to find a better deal: You may be paying more than is necessary on your home loan, insurances and utility bills. Comparing your options via your mortgage broker or websites such as HelpMeChoose.com.au can help you find the best deal suited to your needs and save you money in the process.
For more budgeting tips and home loan options call Rob Lees and the team at Mortgage Choice, Penrith and Blaxland on 4739 9749.