There are a few key ways you can take control of your finances to achieve your money goals in 2019.
Tip 1: Set Your Money Goals for the Year
What are your money goals for this year? You need to make them specific, achievable and give yourself a timeframe to achieve them.
Once you have your goals, you need to set up a plan for how you’ll achieve them. For example, if you want to save $5,000 by the end of the year, work out how much you will need to save each payday.
Set yourself a budget so that you can work out where your money is going. Start with essential costs like rent or mortgage, food, bills, and transport, then allocate money for any debts you’re paying off. Anything left over can go towards your money goals.
Tip 2: Set Savings Aside
Setting savings aside will help cover you in case of an emergency and will also help you reach the money goals you have set for yourself. Set up an automatic recurring payment to regularly transfer money into a high-interest savings account that is easy to deposit into but hard to withdraw from.
Tip 3: Pay off Your Debts
To get on top of your debt in 2019, break down what you owe into smaller amounts by prioritising what you can pay first.
One option is that you could start by making extra repayments on your smallest debt first and once you have paid that off, move on to the next smallest, and so on. If you start small, by the time you get to your biggest debts you will be well equipped to pay them off. Another option is to pay off the debt with the highest interest first.
Tip 4: Consolidate Your Super
If your super is spread out across multiple funds, you are paying multiple sets of fees that are reducing your balance. Your super sets you up for your future, so start the year by consolidating it into one fund so you pay less fees and grow your lump sum faster.
You can also contribute extra to your super to grow your balance faster. Find out more about how to do this here: https://www.moneysmart.gov.au/superannuation-and-retirement/keeping-track-and-lost-super/consolidating-super-funds
Tip 5: Invest in your Future
If your debts are under control and you’ve built up some savings, 2019 could be the year to start investing.
Make sure to always do your research. Take the time to read up on the investment options that you are interested in, by reading money or investment magazines, or following finance and investing experts on social media.
It’s best to choose an investment based on how long you are prepared to have your money tied up. Growth assets like shares and property that usually have better long-term returns, can be more volatile in the short term.
Start Planning Today
By putting a good plan in place for your money goals for 2019 and committing to it, you’ll not only achieve your goals, but you will set yourself on the path to financial freedom.
If you need advice on how to get started or would like further information on any of the above tips, contact me today.