As we enter into 2021 it is a great opportunity to start off the new calendar year right, no matter what last year may have entailed. We have laid out our main advice and tips for you to use or to keep in the back of your mind when making your financial goals for this year or if you feel you might be having trouble taking control of it all.
Goal setting is a powerful, proven way to move you from where you are now to where you want to be.
Taking the time to write down what you want to achieve financially will bring you closer to that goal. The more specific the goal, the more likely you are to achieve it.
KNOW WHAT YOU SPEND AND BUILD A BUDGET
Review your expenditure over the past year by adding up your credit card statements or expenses in your bank accounts.
Once you know what you have spent, you can think about whether you need to make changes or tighten your spending habits.
Are you getting the most from your money? If you can’t answer that question, it’s time to create a budget for yourself or your business. Having a budget should be the number one priority for anyone serious about reaching their financial goals.
BOOST YOUR SAVINGS
Now is the time to put aside a little extra cash in savings.
With the fat trimmed from your budget, you will now know how much you can save. The amount might seem small per fortnight but every little bit helps.
A fantastic way to force yourself to save is to create a savings account without direct cash access, such as a debit card.
INCREASE YOUR SUPER
Superannuation is a great savings vehicle for retirement but you are limited by the amount of money you can put into it each year.
However, if you rely solely on contributions from your employer then you will likely have plenty of room left over.
From increasing your salary sacrifice contributions to doing after-tax top-ups, there are plenty of ways to put that surplus income to work for your retirement.
So, what can you do right now to spruce up your super?
- Find and roll over you’re super now. If you have more than one super account, it’s a good idea to roll it over into one account. One account means less in fees and more opportunity to make that lump sum grow.
- Choose a new fund. When choosing your super fund, it’s important to look for a fund with low annual fees, a history of high-performance returns and an investment strategy that aligns with your preferences.
- Consider a salary sacrifice. This means contributing a little extra each payday to your superfund – a great way to supercharge your super balance and you’ll pay less tax.
PLAN FOR EMERGENCIES
It’s important to have a strategy for when things go wrong.
Loss of income due to unforeseen health concerns can be crippling for any family.
Insurance cover can help protect your strategy, making sure that those you love will have one less thing to worry about should something bad happen. Which leads me into.
CHECK UP ON INSURANCE POLICIES
Insurance isn’t the most exciting word going around, but regularly reviewing and reevaluating your policies, to ensure they are updated with your current personal circumstances, can mean that you are completely covered and can save you a lot of money and heartache down the track.