3 Easy Resolutions for the New Financial Year
3 Easy Resolutions for the New Financial Year
Another financial year has passed. Since you probably don’t have a NYE size hangover, why not use that clarity to make a few resolutions for the new financial year. Here’s a few suggestions to get you started. I’ve given you my resolutions, add let’s turn over our new financial leaf together.
1. Stop paying for something you don’t need anymore
Most of us have one direct debit that comes off the credit card that we just don’t need to pay for anymore. We used to go to the gym and that’s fallen by the wayside or a channel on pay TV that we never watch. See if you can find one thing that you can give the boot.
Rhiannon’s NY Resolution
For me this is my monthly subscription to an audio-book company. Two years ago it was great, I got to ‘read’ some great books but life has moved on, I just don’t have the opportunity to listen to all the books I have accumulated. I contacted them a few months ago and they convinced me to just suspend the account for three months. Now it’s back and I’m racking up credit card bills in line with the book credits).
2. Get a better deal
A small change to some of your bigger expenses can make a huge difference to your cash flow. By checking out better deals on your mortgage you might be able to save even a quarter of a percent. On a $400,000 mortgage that saves you $1,000 a year. By knowing what other lenders will offer you can even approach your existing bank and ask them to give you a discount to sop you moving, might save you both money and hassle.
Choice’s new research has estimated that switching your shopping from Woolworths and Coles to Aldi can save you 50% off your grocery bill. A typical family can easily save $100 a week on the grocery bill, a whopping $5,000 a year. As a fairly passionate Aldi shopper for the past couple of years I have been really impressed by quality of the meat and veges, not just the packaged goods. It takes a while to get used to their range and for particular specialty or branded items you might need to duck into a rival to complete the list every now and then, but the range at Aldi is getting better and better and I’m finding much less reason to shop at the big two these days.
We recently managed to save a quite a bit on our internet. We are still with the same provider we set up with 7 years ago, but just by doing a bit of research and updating our plan we were able to get much better value at a much lower price saving us nearly $500 per year. My new resolution is to look into the utilities deal. Last time I actively looked at this was about 4 years ago so it probably time I had a look around, even if I just approach my existing providers I’ll probably do a lot better than when I just neglected it.
3. Making the most of your tax refund
If you are lucky enough to get a tax return this year what are you going to do with it? If you’re like most of us it either goes on a bit of a splurge or disappears into the vacuum of your bank account never to be seen again. How about using it a little more constructively this year? You don’t need to be a complete miser though. How about agreeing now that half is you to enjoy now and half later. When you’ve worked out how much it’s going to be, be disciplined about both the spending and the saving. Make sure you enjoy your ‘now half’ whether it’s the size of a dinner or a new handbag or only stretches to that book you’ve been promising yourself or a ticket to the movies. Then make sure that you deliver on your commitment to enjoying the ‘later half’. You can make an extra contribution to your super or into the part of your mortgage you can’t easily get your hands on.
While your doing you your tax return this year keep one eye on what you could do better for the next year. Is it keeping receipts when you donate money? Or keeping a log bog for your car mileage? What can you do now to make next year’s tax time easier and more rewarding? So you’ll have more money for now and later next year!
I’ve been an employee for the majority of my working life. While I thought and talked about superannuation for my clients nearly every day of my working life I didn’t think much about my own. A few years back I set up a small salary sacrifice and it just ticked along with pleasing results and so superannuation is something I didn’t have to think about much. Now I’m a business owner things are a bit different and it’s much more of a deliberate decision when you are balancing cashflow for the company against the need to pay your salary and super. My resolution is to devote my saving half to my super fund. I thought about a little bit extra off the mortgage but like many of us who have a redraw facility I think I’ll avoid the risk that we’ll spend it by locking it away for later. And I haven’t quite decided entirely how I’ll spend my now money but a massage and a pedicure is seeming pretty good at this stage.