The beginning of the year is often a time of reflection. It’s when we think about what we’ve achieved in the past and what we’d like to do in 2023. Your focus could be on family, career, love, fitness or a hundred other personal goals. You might also take the opportunity to review your finances and put some positive measures in place to build your financial future. To help you, we’ve drawn up a list of resolutions to get you thinking.

Resolution 1: Set a savings goal

The number one rule to setting a savings goal is to be realistic about it. Look closely at your essential expenses and honestly at lifestyle costs that you can cut back on (often dining, dressing, gift giving and pampering can all easily be toned down). Set yourself an achievable amount to put aside fortnightly or monthly. This way you’re more likely to stick to it and it can be fun to find economical alternatives to extraneous expenses.

Resolution 2: Create separate accounts

Have your pay automatically deposited into separate accounts for savings, fun expenses and fixed expenses. This will ensure you meet your commitments and keep a tab on how much you have to play with. It will also eliminate worrying concerns about having enough in your account to cover the essentials.

Resolution 3: Find a better interest rate

The start of the year is a good time to go shopping for a better interest rate on your mortgage. This can be as simple as a direct approach to your existing lender. If you don’t ask, you’ll never know. Once you have a better rate, keeping your payments the same or higher will mean that you can be in a position to pay your debt down and anticipate future increases in interest rates.

Resolution 4: Set up a regular investment plan

A regular investment plan with a focus on growing wealth over a period of time is a relatively easy thing to set up. Speak to your financial adviser about whether you should divert regular savings to this plan, or if you have debt, whether you should take care of it first.

Resolution 5: Make use of tax-deductible contributions

Are you maximising tax-deductible contributions to your super? If not, start the year by finding out how much you can afford to contribute (with guidance from your financial adviser). Several factors can affect this, including how far out you are from retirement.

Resolution 6: Perform a Superannuation health check

Make time to look closely at how your super is invested, keeping an eye on how hard it is working for you. If you think it could be invested more appropriately, talk to your financial adviser.

Resolution 7:  Consolidate credit

While cards are an effective way to earn points, having too many can make it difficult to keep track of spending. Pick the one that not only rewards you best, but also gives you the best rate and consolidate the others into it.

Resolution 8: Review insurance policies

Are you paying for cover you don’t need or alternatively are you underinsured? If you get sick or can’t work, your investments, savings and debt repayment will all suffer. Look closely at your insurance policies and make sure you’re appropriately covered.

Perhaps the wisest resolution of all is simply to be better informed. Commit to learning more about managing your money and being actively involved in your finances in 2023.

Always the best and first place to start is to seek advice.

If you would like more information please call 1300 ELSTON or contact us.