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10 tips for a new financial start



Whether you’re struggling to get out of debt or you have your eye on something expensive you want, it’s always a good time to give yourself a financial makeover. Take a step back and look at what you’re doing with your money and where it’s going, then embark on a fresh, new financial start.

1. SET FINANCIAL GOALS
Don’t overlook the importance of setting financial goals. Just like in your personal life, setting a goal will give you something to aim for and to motivate you. Think about what you really want to achieve. This could be something to help get you out of debt, or a savings goal for something you’re dying to have. Paying off the mortgage as soon as possible or making contributions to your superannuation are two of the best savings goals you can set.

2. GET CONTROL OF YOUR FINANCES
Sometimes it seems like your money just disappears and you’re at the ATM more often than is good for you. It’s so important to know exactly where your money is going. Sit down with your bank and credit card statements and list everything you are spending money on, from rent to food to clothes, coffee and transport. You’ll be amazed at what you find and instantly see where your money is being wasted and where you can save.

3. WRITE A BUDGET – AND STICK TO IT!
So many people ignore writing a budget and then wonder how problems sneak up on them. Sit down and figure out where your money is going and what you can cut out of your spending. Then write up a budget detailing how much of your pay goes into the savings account, how much to your necessary expenses and how much to play with. Most importantly, stick to your budget!

4. FIX YOUR BANKING
You are mad to be putting up with a bank account that costs you money. Most of us have a range of different savings and transaction accounts with a bank. Each of them probably attracts a certain level of fees. It’s time to assess these accounts and see which ones are really needed. Consolidate or shift accounts to lower or no-fee online accounts which usually earn great interest.

5.STAY AWAY FROM CREDIT
Credit cards are dangerous! If you’re in financial trouble the first thing to do is cut them up. So many people underestimate, or don’t realise, the damage credit card debt can do. You’ll never be saving money if you’re paying 18 per cent interest on your card. Get a credit/debit card instead, which can be used like a credit card but takes the money out of your account.

6. START A SAVINGS PROGRAM
It takes discipline but it’s worth it. Here’s an idea. On pay day organise to have 10 per cent of your salary automatically transferred into a separate savings account. If it happens automatically, you’ll forget about it and adjust your life to surviving on the remaining 90 per cent, plus you’ll be amazed at how quickly the balance in the savings account grows. Another idea is at the end of each day empty the change from your pocket or purse and put all the loose gold coins in a jar. When the jar’s full, bank the coins in a savings account and watch it grow.

7. GET YOUR TAX RIGHT
The yearly tax return can be such a boost to achieving your financial goals. Over the year collect receipts for things that you might be able to claim on tax. Was it a work-related expense? These days the list of what you can claim is endless, from sunscreen for builders to textbooks for uni students. If you’re organised, you can get a lot more out of your tax return. Start with the Tax Office website (www.ato.gov.au), which has a list of accepted deductions for different types of jobs.

8. EARN MORE MONEY
You might find that in your case, you just need to earn more money. Think about ways you
can boost your income, either within your current job or by doing something else on the side. Sit down with your boss and discuss whether you deserve a pay rise and what you can do to earn it. Or you could start up a small business and moonlight
in your spare time.

9. BEAT THE MORTGAGE
The same goes for the mortgage. Always think about how you can wipe some time off of your mortgage by paying a bit more. Do anything to increase monthly payments, pay fortnightly or just pay off a bit extra when you can, and it could end up saving you thousands. Don’t forget to ask the bank for a better deal on your mortgage. It might work, or it might not, but it’s worth a try.

10. SAVE MONEY
Look around for better deals on home, car and life insurance and look at things pushing up your bills. Decide if you really do need the second fridge or electric heating – there’s always a way to do things cheaper.

TOP TIP
Give yourself the best chance for financial freedom by being honest and diligent with your new regimen.