The new year is a time for setting and achieving new goals, and for many people, that includes financial goals. Whether you want to save more money, pay off debt, or invest for the future, achieving your financial goals takes planning and discipline. Here are a few tips to help you hit your financial goals in the next 12 months.
- Set specific, measurable goals: The first step in achieving your financial goals is to set specific, measurable targets. Instead of saying “I want to save more money,” set a specific goal such as “I want to save $5,000 this year.” This will give you a clear target to work towards, and make it easier to track your progress.
- Create a budget: In order to achieve your financial goals, you need to have a clear understanding of where your money is going. A budget will help you keep track of your income and expenses, and identify areas where you can cut back in order to save more money. You can start by looking at all your expenses and classifying them as either essential or discretionary.From there, take your income and decide how much you want to put aside every month in order to achieve your goal. That might be 10 per cent, so you know you need to find a way to make your income minus your total expenses hit that target. A good way to do this is to prioritise your discretionary expenses and then cut back on certain areas. For example, if you like to eat out, you still can, just cut back on how many times per week you are going out. Or you could cut out something else, like a streaming service or two and put that towards a more important expense.
- Automate your savings: One of the easiest ways to save more money is to automate your savings. You can set up automatic transfers from your checking account to your savings account, so that you don’t have to think about it. This will help you to save more money without even thinking about it.
- Pay off debt: One of the most important financial goals for many people is to pay off debt. If you have high-interest credit card debt, it’s important to focus on paying that off as quickly as possible. One way to do this is to create a debt repayment plan. Start by tallying up all your debts and their respective interest rates. You can then choose to put more focus on paying down the higher interest ones first, the smaller ones first or another way to simplify is to find out about consolidating them all into one loan product that comes with a lower interest rate. That way you can easily manage the repayments and quickly pay down your debt.
- Review and adjust your plan: it’s important to review your plan regularly and make adjustments as needed. If you find that you’re not making progress towards your goals, you may need to adjust your budget or make other changes to get back on track.
- Start investing: Finally, investing is an important part of achieving your financial goals. Whether you’re saving for retirement or looking to grow your wealth, investing in a home or stocks can help you achieve your goals.
Looking to buy a home or invest in property?
If you are looking to invest in property and you’ve successfully put together a budget and paid down any debts, then the time will come when you need to save for a deposit. Saving achieves multiple things – it helps build up a nest egg that you can use as a deposit, while it also shows a lender that you can manage money.
Start saving and putting money away so you get into the habit of living off only a portion of your income. When the time comes to buy, you will know what you are capable of managing in terms of repayments and that should give you plenty of confidence to move forward with buying a property.
Whether you are looking to buy or need help finding the right loan to consolidate debt, a mortgage broker is a great first point of contact. We can help you work out your borrowing power and find great rates that are tailored to your situation and needs. So, let’s talk.