Five simple tips for getting your finances in shape for the spring season
It's that time of year again when we clean out our wardrobes, freshen up the house and prepare for the warmer summer months. Why not also consider spring cleaning your finances?
To help you along the way, BankWest and Gay Curtis, Money Coach and author of 'Smart Girl's Guide to Money' are offering five simple tips to help you shake off the winter blues and set yourself up to be more financially fit and happier for the months ahead.
1. Reassess your goals
Are you saving for a holiday, a car or even a new pair of designer shoes? Don't be one of the 1.4 million working Australians who don't save any of their monthly income . Now is the time to reassess your savings goals and see if you're financially on track. If you're a bit behind, identify what's slowing you down and try to change it. If you haven't worked out your savings goals, try separating them out into short, medium and long-term goals.
2. Make a Budget
Is making a budget one of your priorities? A recent BankWest survey reveals that Australians spend more than double the amount of time in the gym per month compared to the time they spend managing their finances².
If you've never made a budget before, try logging onto www.getsaving.com.au where you'll find helpful tips and tricks on saving and a terrific downloadable budget calculator to get you started.
If you already have a budget it's time to reassess if it's working for you. Perhaps your income has changed or some of your bills have increased. Remember budgeting is an important part of building your wealth and being in control of your money.
3. Deal with Debt
If you find yourself in debt, you're not alone. In fact among current credit cards owners, those who are married have higher average credit card debts ($2,425) than those who are not married ($1,670). Approximately 1 in 4 of those credit card holders who are married have credit card debts in excess of $3,000³. Does this sound familiar? If so, take a look at your spending habits, and reprioritise. Review your loans and credit cards and make sure you're getting the best deal. Check out www.cannex.com.au or www.infochoice.com.au for the best credit cards on the market.
4. Revise your saving plan
Australians are missing out on a possible $6.3 billion (4) each year by sticking with a savings account that pays an inferior interest rate. For people wanting to get a better deal for their money, BankWest suggests people look at TeleNet Saver*, Australia's highest 12 month introductory rate savings account with a variable interest rate of 6.4 per cent p.a. and absolutely no fees.
With your savings in good hands, you can then look at working towards your savings goals, being financially secure and even having some money set aside for a rainy day! In order to do this though a savings plan is definitely needed. We know life gets busy so why not set up a direct debit into a separate savings account. Aim to invest 10 per cent of your pay and watch your money grow!
5. Stay Money Smart
We all go through times when we feel we don't have the staying power to stick with our goals. Why not give yourself incentives to stay motivated? When you reach a major milestone, recognise your efforts with a small reward or treat. Also think about seeking out friends, work colleagues and mentors that you trust to help motivate and support you.
It's time to get financially fit - follow these five simple tips to help you develop a savings plan, stick to it and secure those items you've been dreaming of!
