The end of financial year is fast approaching. Once you get past all the build-up…
Towards the end of the year, people start to get philosophical about the last 12 months and start to wonder what the new year will bring. A lot of people make New Year resolutions that will improve their lives in one way or another — heading into 2021, 50% of people planned to lose weight and exercise more, 43% wanted to eat healthier and a whopping 49% wanted to save money.
Saving money is understandably a priority for all Australians. Money can be the determining factor in how we live our lives, from how we eat to where we live, how we spend our free time and so much more.
If saving more money is a priority for you in 2022, we’re here to help. Here, we share five financial New Year’s resolutions that can actually make a difference in your bank account.
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I will ask for a raise or change careers
If you don’t ask, you don’t get it – Mahatma Gandhi
A quick way to make extra money is to ask for a raise at work. The extra income can go towards paying off your mortgage, boosting your savings or investing in something valuable like housing or the stock market. As the saying goes: “if you don’t ask, you don’t get it” — so while it might be nerve-wracking to ask your boss for a raise, it’s still important to give it a go. The worst that could happen is that they say no. If they do say no, consider looking for another job that pays more. There’s no harm in looking.
I will invest in myself
The best investment you will ever make is in yourself – Warren Buffet
Whether you’re gunning for a raise or thinking of changing careers, the best investment for 2022 is to invest in yourself and your skills. Sign up for courses and training that will help you advance in your career, or sign up for courses about investing so that you can try and make some money outside of work hours.
Self-investment is a valuable financial New Year’s resolution — the possibilities are endless.
I will improve my financial health and 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
You can “line up your ducks” in 2022 by ensuring your finances are sorted. Most people think that their finances are managed if they’re keeping up with their mortgage and credit card repayments, but this isn’t always the case. Instead, ask yourself the following questions.
- Do you have personal insurances (income protection, life insurance, etc)?
- Have you consolidated your superannuation accounts?
- Are you getting the best home loan rate?
- Do you have a will?
If you can’t answer “yes” to all of the questions above, then you still have a few wandering ducks out of place. In 2022, book an appointment with a financial planner who can help you organise each of these areas and ensure you are making good decisions for your future financial position.
I will save money (on autopilot) to improve my financial health
Do not save what is left after spending, but spend what is left after saving – Warren Buffet
One of the most valuable and effective New Year money resolutions you can make is to put your savings on autopilot i.e. save money without even thinking about it. You can do this by aligning your savings with your pay cycle — for example, if you’re paid weekly, set up a weekly amount that goes straight into your savings account. The same goes if you’re paid fortnightly or monthly.
If the money automatically goes into your savings account as soon as you’re paid, you can’t spend it on frivolous things. It provides you with a new sense of discipline without actively trying 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
Eliminating debt is crucial to financial success. The more debt you’re dealing with, the more money you lose in interest — it can feel like an endless cycle. Luckily, there are many strategies you can use to get out of debt.
- Make a debt payment plan
- Sell unused/unwanted items
- Create a budget and stick to it
- Get a second job/higher paying job
- Reduce your weekly spending
Want more tips about how to reduce your debt? Download our free Debt Reduction Guide.
Make your financial New Year’s resolutions a success with Elliot Watson Financial Planning
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