2017 Money Saving Tips
These Money Saving Tips Will Kickstart Your Year And Your Journey To Financial Freedom
Whether you plan to pay off your credit card, take a trip away, save for a new home or invest in your future, everybody could do with a little extra cash.
But as we all know money certainly doesn’t grow on trees. And as we struggle with our bills and expenses throughout the year savings can slip away as an afterthought, while credit card debts and repayments can slowly creep up on us.
So this New Year, as everyone is putting together their list of resolutions, take the time to manage your money and to produce your Financial Goals for 2017!
To get yourself started, break down your bigger financial targets into smaller, more achievable goals so that you know exactly what you want to achieve financially from the year. And if you really want to make these goals stick be sure to write them down, since there’s nothing more helpful than having a visual reminder to keep you on track. So put pen to paper, or finger to smartphone, and get started on your list of goals.
BUDGETING & SAVING
The next step towards a successful year financially is to set yourself a tight, well-rounded budget that will help you to achieve these goals. This will assist you in monitoring your spendings and savings throughout the year, helping you to eliminate any unnecessary purchases of luxury items that may tempt you when your wallet is particularly plump.
A great way to encourage regular savings is to open a high-interest savings account, where you can easily deposit money but will have more difficulty withdrawing it. To make sure you’re making regular savings deposits, consider setting up a recurring transfer into your savings account to be made just after you get paid. Just be sure that you’re staying on budget and don’t end up overdrawing!
If you can manage to put away $100 per fortnight, then by this time next year you’ll have $2,700, plus the interest that money generates, to put towards the savings target that you set yourself now.
Talk to our expert team to properly plan out your budget and savings plan.
We’ve helped hundreds of families before and we can help you.
REVIEW YOUR HOME LOAN & INSURANCE
Saving money doesn’t have to be just about keeping to a tight budget, a great way to save money is by reviewing your insurance and your home loan. Take this opportunity to check your mortgage and insurance policies against the competition to see if you can find a better deal. A little bit of extra work now can mean huge savings in the long run.
When it comes to reviewing your home loan, consider the different rates, fees and features of your current policy versus the competition. If you find a better deal, speak to your lender and see if they can match or beat it, and if they can’t, don’t be afraid to switch lenders!
Review all of your different insurance policies, including both your car and home and contents insurances, taking the time to compare the price and features of your policies against those offered by other providers. Just like with your home loan, if you find a better deal, don’t be scared to make the switch to a different insurance provider.
What you choose to do with the money you save this year is of course up to you, however, there is no investment safer than paying off your debts.
“Debt can constantly linger above us, burdening our day to day lives and weighing us down financially. Constant repayment costs can make a debt free lifestyle feel miles away and completely out of our reach. So in 2017, why not make debt repayment your financial priority! – Guy Freeman, Senior Financial Advisor
While you may not be able to fully pay off your debt this year, breaking it down into small, achievable sums and making extra repayments wherever possible can get you well on the way. Consider setting repayments into your budget and don’t be afraid to reach out to one of our financial advisors if you need help.
We are offering a free Wealth Review for those who enquire before the end of January!
While for many people, managing a credit card debt has simply become a part of life, paying off these debts beyond the basic monthly requirements can save you years of diminishing wealth through interest payments.
PAYING YOUR CREDIT CARD OFF FASTER
Your monthly credit card statements will show you how long it will take you to pay off your credit card if you are to meet the minimum requirements. However, the more you pay off on your card each month, the more you will save on interest rates.
In this scenario, there is $5,000 owing and the interest rate is 18.00%.
Save $11,279 by making higher repayments.
Taken from ASIC’s MoneySmart. For more detail on the assumptions of this scenario please visit their website.
We understand that this might just be a dream for some but there are strategies we can put it in place to help this become a reality for you.
You’re Not Alone!
Something that many Australians struggle with is juggling several debts on a number of different credit cards, finding themselves overwhelmed trying to pay off multiple cards simultaneously.
STAYING ON TRACK
When it comes to this, ensure that you are paying at least the minimum on all of your cards in order to avoid default and late fees.
You should then pay off the card with the highest interest rate first in order to maximise your monthly savings. Once you’ve paid off the first card, start to work on your credit card with the next highest interest rate, and continue the process until you’ve paid off all of your cards.
Alternatively, you may prefer to pay off the card with the smallest debt first, working methodically until you have cleared your debt.
Once you have paid off a credit card, you should contact your provider in order to close that card down, as you can otherwise be charged fees and service rates by your provider for a card that you aren’t even using.
“Another option to make your debt more manageable is a credit card balance transfer. This will allow you to transfer a set amount of debt to a credit card with a lower interest rate for a set period of time. In order to maximise the benefit of a credit card balance transfer you should ensure that you pay off the entirety of this amount before the period ends. – Ben Budge, Senior Financial Advisor
Be sure to check the interest rate that will apply to the remaining balance if you fail to pay off the amount you set within the given time frame. Also, check what interest rates will apply to new purchases that you make using your card during this time as it will often be much higher than the rate of your balance transfer.
ONCE YOU’VE PAID OFF THE CREDIT CARD
In the end, regardless of the method you choose to pay off your credit card debt, you should endeavour to have only one credit card that you use only in emergency situations. You might also like to consider lowering your credit limit on this card to something more manageable that you can pay back within a few months.
Remember that more cards can mean more debt which can create more stress. Failing to pay off your debts can damage your credit history and make future credit card and other financial applications much more difficult.
BUT HOW DO I GET TO FINANCIAL FREEDOM?
In the end, the best way for you to spend your money will depend on your own unique situation and you should do what’s right for you. However, taking the time to review, monitor and better manage your money this year will almost certainly provide you with benefits in the long run.
Seeking help from a financial advisor is a recommended first step. Professional help is a way to ensure all bases are covered when planning your financial future. My Wealth Solutions offer over a decade of experience making million dollar futures for everyday families.
We’re offering an obligation free Wealth Review for all those wanting to develop and implement a plan to get their finances sorted for 2017!
Don’t wait until it’s too late to take the first step to financial freedom!