Our Recipe for a New Year Financial Detox
Welcome to 2018! Now that it’s the New Year, have you braved the inevitable and checked your bank account for damages?
Despite how much you may have tried to save over Christmas, the holiday season offers opportunity after opportunity to overspend. Now that you’ve made your resolutions, facing the music is all that’s left.
Thankfully, we’ve concocted a simple recipe to help you detox your finances over January to help you get back on track in the New Year.
1 cup of a budget refresh
While you may have a budget already in place and might not feel you need to change anything, use the New Year as an opportunity to look at your expenditure and update it where necessary. Keeping your budget in check means you’ll have a clearer idea of what you have left over each month, reducing the likelihood of your overspending.
1 teaspoon of market comparison
The New Year offers an excellent opportunity to look at your bills to see where you can get a better deal and save money. Looking around the market for a deal on your phone bill, internet and other everyday utilities can offer a chance for you to make significant savings over the next year. It never hurts to inquire!
A dash of De-clutter
Whether it’s duplicate presents, clothes that aren’t exactly in your taste, or shiny new things that have replaced the old ones – consider selling your unwanted items to earn a little bit of extra cash in the New Year.
A pinch of debt organisation
If you have any debt to get on top of, prioritise the ones you want to pay off first. Debts with a higher interest rate usually cost more in the long run, so it’s a good idea to start with those and leave the debts with little to no interest until last.
1 bunch of saving for next year
It might seem too early to be thinking about next year’s holiday season when we are just coming out of this year’s one – but, it’s never too soon to start planning. January is the time to get your savings in place for the year ahead. It’ll save you a future financial hangover this time next year. Factor the savings into your budget and remember to keep a regular check on it throughout the year.
2 tablespoons of Dry January (optional)
Not only is this a great way to get your health and fitness back on track, but it’s also an effective way to ease the pressure on your finances during the month. You might even want to get your friends or family involved! If cutting out a glass of wine or beer isn’t your thing, or if you aren’t much of a drinker, consider cutting out something else you splurge on, for example; takeaway meals or a shopping spree.
At Select, we offer no-obligation, quality, and free home loan advice to help you reach your financial goals. Give us a call on (08) 9417 3399 to talk to us about your financial options.