In a December Ipsos poll, 77% of respondents globally were optimistic 2021 will be a better year for them than 2020. At the same time, 75% of respondents said they were going to make some personal resolutions.

There’s probably a good reason why those response numbers are so similar. When we take positive action, we often feel more optimistic about the future.

One of the things that can make us feel better about the year ahead is taking control of our finances. That’s why I thought I’d write down a few things you might want to include in a ‘finance check-up.’

Three step finance check-up

1. Repair your budget. To tackle your budget, all you need is a pen and paper and a rainy afternoon. Put a number against all your monthly expenses – your mortgage, credit card, groceries, parking, electricity, Netflix, etc. Be as brutally honest as you can, and make sure you leave no stone unturned.

When you see where the money’s going, and what’s leftover, it can be a real eye-opener. You might see an opportunity to tighten up expenses and set a new savings goal for the year. Normal travel might be possible in the back half of 2021, so why not make a proper holiday your incentive for adjusting your budget now?

2. Manage your mortgage. Interest rates are at an all-time low. But how’s the rate on your mortgage? Just because official rates have dropped, doesn’t mean your home loan has benefited. Shop around. See what’s on offer. And if you think you’re paying too much, put a bit of friendly pressure on your bank to match their competitor’s offer. You might be surprised how eager they are to sharpen their pencil.

3. Sort out your super. For a lot of people, superannuation can be a set-and-forget way to invest. Especially in the early years when retirement can seem so far away. But the smart investor never leaves their super on auto-pilot. Dive in. Ask questions. Make sure you’re invested in a fund that matches your risk profile. The more active you are, the better you’re going to feel about achieving your long term goals.

If you would like more information please call 1300 ELSTON or contact us to speak to one of our advisers.