Kick-Start Into Action Your Financial New Year

Thu Jan. 25th 2018

How many of us spent more than we intended to over the Christmas period? When the credit card bills start rolling in in the new year it can be a sobering moment as we realise that our finances are not in the best shape possible. Perhaps your priority this year is an overseas holiday or a move to a bigger house? Whatever the case may be, the new year is the perfect time to take a fresh look at your overall finances to make sure that they are still working for you. In this article we take you through the necessary steps to kick-start into action your financial new year.

Review your debt situation

The first step is to review your debt situation. How many credit cards, hire purchase agreements and store cards do you have and what's the total amount of debt? If short-term credit card debt is an issue then stop using your credit cards. Rethink how and when you buy and consume goods when you don't have the funds available. Instead pay for items in cash. Handing over the actual money often makes us think twice about our purchases and what we're spending our money on. If you have a mortgage, it always worth having it reviewed to ensure that it is correctly structured and that you are getting the best deal possible.

Review your savings and expenditure

It's important to have savings as they provide an emergency buffer to cover the unexpected. What would you do if had to pay for unplanned vehicle repairs or a major household appliance tomorrow? These big ticket expenses can happen at any time and having an adequate level of savings means that you won't get into debt. And rather than going out and buying on hire purchase a new sofa that you don't really need, why not save up for it? Sit down and take an honest look at what you're spending your money on. Do you really need to grab that latte on your way into work every day? And how about taking a packed lunch into the office rather than buying an expensive sandwich or sushi for lunch? By doing this and putting the savings into your mortgage, you can save tens of thousands of dollars in interest charges and shave years off your repayment period.

You'll be surprised at how easy it is to make savings here and there, which can quickly add up to a significant amount. So, take an honest look at your cash flow and see where you can find some savings so that you have an extra buffer financially.

Review your investments

Where is your money invested? The best investments to have are those that appreciate such as shares, term deposits and property. It's also important to periodically review your appetite for risk. Do you need to take more or less risk? Riskier investments often mean higher returns, but they can also mean that your losses are potentially greater too. Therefore, it's important that your investment profile is working for you at a level of risk that you are comfortable with.

Expert help from Cave Financial

Getting started on this process can be a challenge and Cave Financial is here to help. We can support you throughout the review process by helping you identify your priorities and setting you on the right path to achieving your goals. The fresh start that a brand new year offers is the perfect time to get your finances on track so get in touch today and make sure your financial new year gets off to the best possible start.