New Year, new financial you

Taking control of your spending is easier than you think. It could be as simple as setting realistic financial goals or challenging yourself with no-spend days. With the New Year almost here, there’s never been a better time to kick-start a new financial regime. Whatever you want to save for, these smart money tips can help get you started.

Set a financial goal

According to ASIC’s MoneySmart website, you’re more likely to reach a goal if you put pen to paper and write it down. The same holds true for your finances. If you’re serious about getting your finances on track, set a financial goal. Write down what it is and work out what you need to do to achieve it. Say you want to save $5,000 by the end of the year. Start by working out how much you’d need to save each week and what you can do without to achieve your goal.

Challenge yourself with no-spend days

Making even the smallest change to your daily routine can really add up. Skipping your morning latte at the local café, bringing your lunch to work or re-thinking impulse buys are all great ways to save. No-spend days are another way. The challenge here is to get through an entire day without spending a cent. Plan no-spend days on workdays when you have nothing social on in the evening. Eat a packed lunch at work and make dinner at home. A couple of no-spend days per week can make a real difference to your monthly cashflow.

Track your spending

A financial diary is one of the better ways to get an understanding of your spending and where you can save. It’s a realistic look at how much money you need each week for food, travel and entertainment and helps you plan for bigger annual expenses. It can also force you to carefully consider whether you want to make a purchase. These days, there are plenty of apps on the market to help you track your spending in real-time. But of course you can also do it the old fashioned way. Grab a diary and write down everything you spend and earn over the course of a year. That way, you’ll know first-hand what you can afford to save and spend.

Make a budget

It may sound boring, but creating a budget—one that tracks what you earn against what you spend—is a really solid way to achieve your savings goals. It can help you stay motivated and more importantly, realistic about what you can and can’t afford. Once you’ve created a budget, it’s a good idea to review it every few months. Have you stayed within your spending means? Where have there been blowouts? Is there anything you can afford to do without? It’s a money-saving habit that will hold you in good stead for life.

Meet with a financial advisor

Even if your finances are in good shape, getting the right financial advice can make a huge difference. That’s where a financial advisor comes in. Not only can they give you the confidence to achieve your financial goals, they can also help grow your wealth. A good financial advisor can advise you with estate planning, retirement planning, superannuation and investing. They are knowledgeable about taxation and insurance and can help to minimise your financial risk.

The advice in this article is general in nature. We understand everyone’s circumstances are different and recommend speaking to your financial advisor or accountant when considering your financial requirements.

More information:

moneysmart.gov.au