It’s the beginning of a new year, meaning it’s time to reflect on where we are and where we want ourselves to be in 12 months’ time. Whether it’s been a difficult financial year for you or you’ve been able to put aside more than ever before, we could all make some smart steps to set ourselves up for success in the new year. To help you get off on the right foot, Rapid Loans has a list of starting points for your financial resolutions, helping you make goals you can achieve.
Take your savings game to the next level
First things first, set a savings goal. Whether you’re aiming for a house deposit, a down-payment on a home renovation, or putting away for a well-deserved holiday, setting an event as your goal rather than a number can really help to motivate you. If you’ve already got a savings plan in place, see if you could increase how much you put away by as little as $50 per week – that’s an extra $2,600 a year! If this is the first year you’re thinking about putting together a savings plan, make this the year you look through your expenses and figure out your budget. Set a reasonable and achievable amount to put aside each month to ensure that you aren’t dipping into your savings to meet basic expenses. Try it for three months to see if it suits you – if the amount you’ve chosen is a struggle, take it down a little bit and trial it again until you find an amount that sits well with you. Conversely, if it’s too easy, challenge yourself and up the amount.
Minimise your spending
So many of us have made the pledge never to buy coffee again after doing the numbers and realise just how much each week and each year we’re spending on our drinks. But despite our good intentions, eventually the lure of a delicious beverage in the morning lures us back in, and we’re back at our local coffee shop five days a week. Don’t fall back into the same trap this year! Instead of going cold turkey and cutting out your spending all together, try minimising instead. After all, we can all enjoy a little bit of luxury – just in moderation. Enjoy your take away on the last Friday of the month instead of every Friday, or only buy that $5 coffee on a Monday morning when you’re really desperate. This way, you won’t feel like you’re missing out – you’ll be giving yourself something to look forward to, all the while seeing your savings grow!
Automate your payments
Does constantly having to reach into this and that account to get money to pay regular bills bother you? If so, try automating your payments this year so they’re taken care of without you needing to lift a finger. That way, you’ll never suffer from late fees, and you’ll always have an accurate view of just how much income you have to spend on fun. Because after all, there’s nothing more irritating than accidentally spending that carefully allocated money you’d set aside for bills! Another great way is to automate the transaction from your income account to your savings, preventing you talking yourself out of it! After a little while, you won’t feel the difference in your income, but you’ll definitely see it in your savings.
Become debt free
Debt is something that can happen easily to anyone, whether it’s credit cards or car financing or just a few small loans. Paying interest on a bunch of them can often feel like too much and can hold you back from reaching your goals. Many people find a debt consolidation loan the perfect solution, helping them get out of debt sooner. Simply add up the outstanding amount on your existing debts and take out a loan to cover that amount. After you’ve paid off each individual debt, all you have to concern yourself with is meeting one repayment schedule.
If this sounds like a solution that fits your lifestyle, Rapid Loans offers debt consolidation loans tailored to your needs. Visit our website at https://www.rapidloans.co.nz/contact-us/ or call us on 0800 727 436 to learn more.
This is purely an opinion piece and should not be used as a sole source of guidance.