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 get your finances into shape as well.
While saving some extra cash is by no means easy , a little bit of careful planning teamed with a strategic budget can go a long way towards helping you reach your financial goals in 2016 and beyond.
Here are five tips to help get your finances in order this year:
Avoid unnecessary extras and costs: Evaluate your regular outgoings and identify any unnecessary costs which you can cut down or cut out. Have a think about whether you need that takeaway coffee each day and maybe plan a takeaway meal you can cook yourself without the higher prices of a restaurant.
Think small when budgeting: Planning ahead with your finances for a full year can be daunting. Instead do a 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 overestimate or underestimate certain expenses.
Pay off and cancel your credit card: Credit card interest rates are notoriously high. Constant use without complete payment 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 early in the 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.
Consolidate debts: After the Christmas period you may find that you have racked up some additional debts , maybe you have your home loan , personal loans and a credit card here or there. It will probably benefit you and you could save significantly on interest costs to consolidate this debt, thereby saving you money which can be used to ease cash flow or pay off your debt quicker.
Compare to find a better deal: You may be paying more than is necessary on your home loan, insurances, utility bills, etc. Comparing your options via your mortgage broker 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 Tyson Lewis and Nathan Bottrell and the team at Mortgage Choice in South Perth on 9472 0211 or visit our Facebook page if you're feeling social and send us a message.
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