This is the year. 2020 is the year you hit the gym three times a week, let go of resentments, challenge yourself daily, eat healthy, climb Mount Everest and become an astronaut. Whatever goals you’ve set yourself this year, we believe in you and you should believe in yourself. But do you know what will help you reach these new year goals? Solid financial management!
So, here’s our top five budgeting tips for 2020.
Write out your financial goals
Ok, what are your actual financial goals for 2020? It’s very easy to just blurt out at a New Year’s Eve party that ‘my new year’s resolution is to travel around South America for six months’ or ‘this year I’m going to buy my dream home’. After the festive season haze wears off, sit down and realistically assess what your financial goals are, write them all down and prioritise which ones are the most important.
Do a Fresh Budget
A new year is the perfect time to assess where your money is going and see if you can cut down on unnecessary spending. We know, we know, doing a budget sounds terribly boring and stressful but it really doesn’t have to be. Think of it as kind of a treasure hunt, only it’s your own money you’re hunting. Print out your bank statements and categorize your spending. You’ll be surprised where some of your money is disappearing to.
Shop for New Providers
Now that you can clearly see where your money is going, you’ll probably notice large monthly payments to things like insurance, power, gas, phone & internet, gym memberships and various service subscriptions like Netflix etc. Do you really need subscriptions to 7 streaming sites? Probably not. Cancel non-essential services and figure out where you are free to change providers. You might just save yourself a chunk of change each month which can add up drastically over the course of a year.
Set up Different Accounts for Different Goals
You might be thinking – ‘why? I already have a savings account’. Well, breaking down your goals into individual accounts lets you categorise and prioritise your savings. This is also effective to keep those goals in your head. If you see money piling up in your account labelled ‘South America Dream Holiday’ or ‘Astronaut Training Camp’ it will remind you of what you’re saving for.
Reach out to your friends at Visia!
You’ve done the budgeting; you’ve done the planning, but you still fell short of your financial goals. Smart financial management is hard, but it can get easier with a bit of assistance and guidance. At Visia we’re experts at helping people realise their financial goals.
Get in contact today to see how we can help you smash your 2020 resolutions.
Kora Drage is an Authorised Representative of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138. The information contained in this article may contain general advice. It does not take into account your financial circumstances and objectives. You should consider talking to a financial adviser and read the relevant Product Disclosure Statement (PDS) before making a financial decision. Any views and opinions provided in this article may not reflect the views and opinions of Financial Wisdom Limited