Money Bite-Size Read:
- The new year presents an opportunity to set new goals.
- This sets out what you want to do to improve your financial situation.
- Here’s our top 10 money goals for the new year so that you can be in a better financial position a year from now.
The Money Bites Take:
Take advantage of the new year to set some financial goals based on where you want to be next year.
Happy New Year!
A new year brings at least 365 days to make a change in your life. While most of us make resolutions focused on diet or exercise, there’s power in creating goals to build your financial fitness this year instead.
Think about how you want your finances to look a year from now.
People who set financial goals are more likely to save money, particularly when we frame these goals in a way that is meaningful. Likewise, you’re more likely to set resolutions that work if you identify why you’re chasing your goal and write down goals that are important to you.
Here’s our top 10 money goals for the new year:
1. Build an emergency fund
Life happens, and you can’t predict when you might need to fix a broken-down car or travel at short notice. So, get clear on why you need an emergency fund and take steps to build it up until you have enough cash to sleep soundly at night.
2. Automate your savings
Saving money is crucial but becomes difficult when you’re under financial pressure. So that you’re not tempted to spend money in your account, you can automate your savings. That includes using a budget app to know how much you can save.
3. Take control of your debt
Whether it’s credit card debt or using buy now pay later services, debt is money you use now that future you will need to pay for. Start taking control of that debt by calculating how much money you can put towards becoming debt-free, including through the debt snowball method.
4. Make a budget
If you don’t know where your money goes each month, you need a budget. The first step in learning how to budget is monitoring how much you spend each month. You can then work out how much you can save each month and work to achieve this in the budget you set for yourself.
5. Have a no-spend day
It’s becoming easier to just tap your card and spend money without thinking about it. This kind of spending on non-essentials can really add up. Trying a no-spend day can help you become more mindful about your spending habits.
6. Research your work benefits
Many of us work for companies that offer payments outside our salary. This could include retirement contributions or healthcare subsidies for gym memberships. Look at the benefits offered at your workplace to get started, many of which are detailed in your contract.
7. Start investing now
When you see the word investing, the Wolf of Wall Street might spring to mind. However, it’s not just Gordon Gecko who can benefit from investing. Look at how you can get started with investing, including through stock market investments or micro-investing apps.
8. Sort out your super
Super or superannuation is the system to help Australians retire from working life. It’s something we don’t often look at, as retirement feels like a long time away. Take steps now to sort out your super, including finding the best super account for your circumstances and retirement plans.
9. Invest in your health
It’s all too easy to put off health decisions until later. Take steps to budget for self-care so that you have enough money in your budget to look after your health. Prioritising your health protects your number one earning asset in life: you.
10. Learn about money
Many of us didn’t learn about money at school, but many young adults worry about money. Taking steps to learn about money by yourself will help address any knowledge gaps and boost your confidence in managing money, including accessing available support.
What money goals will you plan to achieve this year?
There’s no limit to the number of financial goals or resolutions you can make each year. Make sure that these goals are clearly articulated and meaningful to you, as this framing means you’re more likely to achieve your goals.