06 Jan Kick Off Your 2022 Finance Goals
It’s time to set new year finance goals for the next 12 months. That might mean finally paying off debt, buying a house or taking a long-delayed vacation.
New year, new financial you! Here’s how to start 2022 off on the right foot.
The last few years were not so pleasant years for most of us but one good thing to come out of it was how it made us more aware of our money habits and finance plans.
We’ve compiled a list of hacks or tips you can try to give you some inspiration in helping you reach your finance goals.
Limit discretionary spending
To get a better sense of what you’re spending your money on, check your bank statements or download a spending tracker app. Sometimes a shock, like realizing that you’re spending $200 a fortnight on Uber Eats or racking up hundreds in Afterpay debt by buying homewares and clothes online, is exactly what your behavior needs to shift.
Keeping track of your spending may reveal transactions coming out of your bank account that you were unaware of, like a subscription you forgot to cancel.
Get started on your emergency fund
Building an emergency fund can be challenging, but it offers flexibility and comfort in case of unexpected expenses. It might be better to set a goal of saving $100 a week or even a smaller amount every day instead of $400 a month.
Increase your equity by paying down your home loan
Equity in your home is the difference between the value of the property and how much you still owe on it. Building home equity is important because it’s a resource you could tap into later on if you want to buy another home (this is known as a home equity loan).
In addition to being able to convert equity in your home into cash once the property is sold, equity in your home can also be used to finance renovations, invest, or fund a holiday. You can even use your equity for the deposit for your next home or investment property.
Put your savings in an offset account
An offset account can be an easy way to reduce the interest you are charged on your home loan. It operates like a transactional savings account that is linked to your home loan balance. Any money in this account offsets your loan balance, reducing the amount of interest you are charged.
Refinance your home loan to a more competitive rate
With most home loan interest rates now at around the 2% mark, there has never been a better time for borrowers to shop around and get a better deal.
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This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.