The new year has kicked off and with it, the opportunity for a fresh start and new financial goals to achieve.
The financial and health challenges of the past two years have made well-managed finances even more essential in the new year.
If you’re one of the 40% of Australians who plans to improve their finances in the new year, we have four goals for you to consider tackling:
- Reducing Debts
- Save More
- Build an Emergency Fund
- Plan for Long-Term Financial Health (Retirement, House, Aged Care, Investments)
Plus – we map out clear steps of how you can achieve them in the next 12 months!
Improve Your Finances in the New Year with These Financial Goals
1. Reducing Debt
If you have been struggling with debt, it may feel like you’ll never reach a life of debt-free.
But with smart guidance and new year motivation, you can make a realistic debt management plan for success!
Find a debt reduction strategy that works for you. You may find it helpful to tackle one of your smaller debts first and try to settle it as soon as possible. Maybe you want to tackle the debt with the highest interest rate to save you more money in the long term? The choice is yours.
Reducing your debt is the first step towards achieving well-managed finances.
2. Save Smarter
What do you have planned for 2022? The new year is the perfect time to plan out your big-ticket expenses for the next 12 months.
- Do you want to take a family holiday?
- Are you planning on purchasing a new car?
- If you found the Christmas season financially stressful, it might be smart to start saving for this year’s Christmas now! Putting a small amount aside every week can be simple and effective!
When trying to reach a savings goal, the most important thing is to remain consistent. Don’t set yourself unrealistic goals – find a weekly amount that is achievable and motivates you to save more!
A great way to save is through establishing a budget!
Once you have mapped out all your expenses within your budget you can allocate funds for these expenses and allocate the surplus towards your goals. It’s essential you understand your expenses and manage your cash flow effectively. This is the key to achieving long-term financial success.
3. Build an Emergency Fund
Emergencies are inevitable and difficult to prepare for. But an emergency fund helps you be better financially prepared when life does throw you a curveball.
Aim to save between 3-6 months worth of expenses for you and your family so that when the unexpected arises, you can minimise financial stress and won’t have to dig into your savings or investments.
4. Plan for Long-Term Goals
If you’re looking to make big financial moves in 2022, this is where you can start to map out your long-term goals.
What are the things you want to achieve in 5, 10 or even 30 years time?
Do you want to:
- Start saving for retirement or Retire Early?
- Purchase a house or investment property?
- Start planning for your parents’ aged care step?
- Start an investment portfolio to help you build your wealth?
How can you take small steps this year to make those dreams happen?
This is where it can be beneficial to work with an experienced financial planner. They can help you identify your goals and create a step-by-step plan to help you achieve them.
Seeking Financial Advice in Adelaide?
Prominent Financial Services provide everyday Australians with financial success, satisfaction and confidence through superior service, guidance and education.
Work with Christine – our financial planner in Adelaide who is helping more Australians plan for an awesome financial future.
Get in touch with us now and let us know how we can help!!
