The end of the year sees people get philosophical about the past year and what the new year will bring. Most people make New Year Resolutions about losing weight, exercising, and getting healthy. In 2018, why not make your financial health your main priority. Here are some ideas for New Year resolutions you can make to improve your financial health.
I will ask for a raise or change jobs
If you don’t ask, you don’t get it – Mahatma Gandhi
A quick way to make extra money is to ask for a pay rise. As the saying goes if you don’t ask, you don’t get it. Give it a go. See what happens. If the answer is no, then consider looking for a job that pays you more. There is no harm in looking.
Once you have gotten a pay rise make sure that extra income goes towards paying off your mortgage, savings or is invested. Do not add the extra income to your spending money.
I will invest in myself
The best investment you will ever make is in yourself – Warren Buffet
You are your best investment; invest in your skills. Sign up for courses which will help you advance in your career or sign up for courses in investing so that you can try and make extra money outside of work. Investing in yourself is potentially one of your greatest investments.
I will get my ducks in a row
If it is important to you, you will find a way. If not, you’ll find an excuse – Ryan Blair
Line up your ducks by making sure your finances are sorted. Many people believe that their finances are sorted if they are keeping up with their mortgage and credit card repayments. However, can you answer ‘yes’ to the following questions:
- Do you have personal insurances (income protection, life insurance etc)?
- Have you consolidated your superannuation accounts?
- Are you getting a great home loan rate?
- Do you have a will?
If you can’t answer yes to all the above questions, you still have a few ducks out of place. It is advisable to meet with a financial planner to help you through each of the areas to make sure you are making decision suitable for your financial position.
I will save money (on autopilot)
Do not save what is left after spending, but spend what is left after saving – Warren Buffet
Put your savings on autopilot. Align your savings with your pay cycle. If you are paid weekly, set up a weekly amount to go into your savings account, likewise if you are paid fortnightly or monthly. If the money goes from your account as soon as you are paid you can’t spend it. It provides you with discipline without you having to be disciplined.
I will pay off my debt
Although no one can go back and make a brand new start, anyone can start from now and make a brand new ending – Carl Brand
Getting out of debt is crucial to financial success. The more debt you have, the more money you lose in interest. There are many strategies you can utilise to get out of debt.
- Make a payment plan
- Sell unused/unwanted items
- Get a second job
- Reduce your spending
Read more about paying off your debts in our Debt Reduction Guide.
Who is Elliot Watson?
The views expressed in this publication are solely those of the author; they are not reflective or indicative of licensee’s position, and are not to be attributed to the licensee. They cannot be reproduced in any form without the express written consent of the author.
Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429. The information (including taxation) in this article does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.