Whether you set them or not, you can't escape talk of 'new years resolutions' at this time of year. A resolution is by definition, a firm decision to do or not do something. In the case of financial planning, action is the single most important thing - so we encourage you to take charge of your finances this year, and make some resolutions to put you in the best place possible.
1 - Set a Saving Goal for the Year
It's easy to promise yourself you'll save some money this year, but writing down an actual goal and planning how to get there is the only way to go. To make your goal more achievable, break it down into months and be realistic about what you can afford to set aside. Secondly, have a reminder about what you're saving for; is it to pay off debt? buy a new car? go on a holiday? or maybe its save for a deposit on a property - either way, having something tangible in your mind will help you stay motivated to save. Check out our post on some apps that can help kickstart your saving, or make a free initial appointment with one fo our expert financial planners!
2 - Set up a Long Term Financial Plan
If you're already well practiced in setting short term (meaning year by year) financial goals, its great to have a think about where you want to be in the next 5, 10 and even 20 years. This could consist of looking a different structures to invest like a self-managed superfund or investment property. In order to make this plan effectively you'll need to educate yourself on some options or seek expert advice - but the most important thing is to start NOW. Research shows you are 42% more likely to complete your goals if you write them down somewhere. So get cracking!
3 - Be Critical of Your Debt
Debt is almost a fact of life at this point, most people, through one avenue or another, have it. It can be easier to set debt aside and ignore it, but being proactive about repaying your debts will ultimately set you up for a clear head and a better financial future. Depending on the kind of debt you have, you may be able to set up a repayment plan, and opt for higher repayments if you can afford it. Whatever it may be, its essential to plan how much you can dedicate per month to paying off your debts.