Budgeting

Set a Financial New Year’s Resolution that Really Works

Did you know that 60% of the population usually or sometimes make a new year’s resolution? While that may surprise you, the really staggering stat is that less than 10% actually achieve their goal.

The number one resolution is to lose weight, number two is becoming more organised, three is sorting out finances, and four is enjoying life to the fullest. So while we can’t help you lose those holiday season kilograms, Credit24 really does care about you and your money.

So, as you prepare to join those millions of Australians who make promises to themselves for the new year, let’s set some realistic goals that really will organise your money, save more and enjoy life in the process.

1. Spend less

It sounds easy, but it’s hard. That’s because you need a roof over your head, food in your family’s bellies, all those utilities and a bit left over for fun.

But it’s time to break it down: take a look at your mobile phone contract – do you really need those bells and whistles? Are you making a shopping list when you stock up on groceries? Will you get around to fixing that leaking tap? It all sounds a bit trivial, but it really adds up.

Cutting back on the essentials is hard, but discretionary spending is easier to slash. You probably eat out too much and buy too many new sneakers. And there are almost certainly cheaper alternatives so it means you don’t have to go without altogether.

2. Save more

Surely ‘save more’ is the same as ‘spend less’? Not quite. While you need to spend less to achieve it, saving more actually requires a separate plan – and it can be so simple. Set up an automatic payment so that every time you get paid, a little amount is transferred into a special savings account. Because if it never hits your wallet, you won’t spend it and you probably won’t miss it.

3. Deal with debt

Debt: almost all of us have it. But while Australian household debt is growing, it’s not a problem until it puts you under financial strain.

If that sounds like you, you’re probably thinking personal loan, credit card, mortgage – and more. The problem is usually dealing with it as a whole: ‘my huge debt’. But break it down: prioritise the debts with the highest interest rates, and start to attack them by paying a bit more than you were before. Can you afford to pay one high-interest card off completely? In the not-too-distant future, that decision could save you significantly. Or can you switch the balance to a lower interest option?

Of course, at Credit24, we know as well as you do that financial new year’s resolutions would be so much easier to manage if life went exactly the way we want it to – but it so often doesn’t. So when one of the life’s little emergencies pops up, it’s nice to know you have a backup plan in the form of a short-term loan by someone who understands the challenges of everyday life. Contact us for more information!