Most of us resolve to get our finances in order at the start of a new year (along with our diet, health, relationships…) but how many of us see that through? Well, maybe this is the year you take control and whip your finances into shape.
While growing your savings is no easy feat, a little bit of careful planning, teamed with a strategic budget, can go a long way towards helping you reach your financial goals in 2014 and beyond, whether that be paying off your credit card debt, reducing your mortgage, or saving for a holiday or your first home.
Mortgage Choice spokesperson Jessica Darnbrough offers a few money saving tips and real-life pointers to help us stick to our financial goals this year.
1. Avoid unnecessary extras and costs
Evaluate your regular outgoings and identify any unnecessary costs which you can cut down or cut out. Cutting back on guilty pleasures like takeaway coffees, Friday night takeaway or premium television packages can lead to significant savings in the long term.
2. Think small when budgeting
Planning ahead with your finances for a full year can be daunting, and ultimately, ineffective. Instead, 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.
3. Update your savings account
Research the benefits offered by savings accounts across various financial institutions. Switching banks and opening a new account with a lending institution that offers lower fees and higher interest rates will allow you to save more in less time.
4. 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.
5. 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 or websites such as HelpMeChoose.com.au 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 visit www.mortgagechoice.com.au.
What are your best money savings tips? Share them in the comments!