Five financial tips to start the new year fresh

As we are heading at full speed towards the silly season (and the opportunity to overspend will no doubt present itself) here are our five tips for getting, and keeping, control of your finances.

  1. Living within your means seems obvious, but surprisingly, many people don’t. It’s why credit like store/bank cards and shop-now-pay-later facilities are so popular. Unmanageable debt has the power to keep you awake at night – and not in a good way. In short, don’t be a slave to possessions; why lock yourself into debt more durable than the item?
  2. Save. The world is full of opportunities: travel and socialising, etc., but don’t underestimate the security of a stash of cash. With a small, regular commitment you can have a life and save too. Consider this example that shows that an initial $500, plus $50 per week over five years, could accumulate almost $15,000! (Assuming no withdrawals and 2.5% interest over the period). Additionally, developing a savings habit will help create a good credit score for, say, a future home loan.

  1. Buy quality, pre-loved items like clothing or furniture. Pieces in good condition will generally last longer, and with care, can become classics you won’t need to replace.
  2. Eat out less. Nothing beats a home-cooked meal for cost-savings and old-fashioned job-satisfaction. For $30, you could cook yourself and a friend a similar meal costing around $80 in a restaurant. (There’s the week’s $50 for your savings account!)
  3. Make a budget and stick to it. Record income, then expenses beginning with non-negotiable ones like rent/mortgage, loan-payments, insurance, transport, groceries, etc. If you can’t account for some of your money, a budget will help you identify areas of over-spending so you can reallocate funds to savings and discretionary expenses. The government’s MoneySmart website provides a budget planner to get you started, or create your own using a spreadsheet.

 

Hopefully our 5 financial tips will help you to start 2023 the right way and set you up for a year full of financial goal busting!

 


Please don’t hesitate to reach out to a member of the Sciacca’s team if you would like to book in a time in the new year for a financial health check. We’d love to help you achieve your goals.
 

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