How to tackle your New Years financial resolutions
Apparently the 19th January is the day most people give up their New Year resolutions. Don’t be that guy, here are some tips if yours was to get on top of things financially this year:
TRACK YOUR SPENDING
The best way to control you spending is to understand where it all goes. I would suggest getting three months’ worth of bank statements to track spending, then categorizing expenditure into food, clothes, rent, entertainment etc. to get an understanding of how much you spend in an average month. Once understood where you are spending money, you can have a frank conversation with oneself and elect areas to focus on savings.
REVIEW YOUR COSTS
The new year is a good time to review all your providers such as phone, electricity, car/house insurance, life insurances (a good insurance broker can assist on insurances) to make sure you’re getting the best bang for buck. Are there any new deals you can take advantage of?
PLAN YOUR MORTGAGE
Get a handle on how much you owe to who, and at what rate. From here diarise when it’s time to re fix your mortgage. Prepare to shop around. Using a broker is a solid idea to come up with a strategy long term.
By getting your spending managed, you can establish if you are in surplus each month or deficit. Really the only way to get ahead is to be in surplus, so obviously you need to increase income or reduce costs if you are not.
KIWISAVER AND SAVINGS
Check your investment strategy (is it growth, conservative or balanced?) and make sure it coincides with your investment timeframe. Double check your tax rate and make sure your provider is doing the best job for you.
GET ADVICE
Seek out independent advice, making sure financial decisions are all coordinated to your long-term financial objectives. By having everything working together you will achieve powerful long term results.
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