It’s a new year! So, you’re going to be thinking about how you want this year to be an improvement on the last. I have some home truths for you. Some things you need to hear. Half of us in Australia set new year’s resolutions, but only 12 per cent of us stick to them. So, as a valued client of mine, I want you to know how to not just goal SET for 2020, but how to follow through and KICK goals too. We’re going to do this. You ready?
Armed with your renewed optimism and determination to maybe buy an additional investment property, consolidate and destroy some bad debts, set up your children with their first property, or make that elusive first home purchase? Then we need a plan. What did you resolve, reflect and plan over the festive break? What are your goals? The great news for those of us with money-based goals is that studies show financial resolutions are easier to stick to than – say – fitness or health goals.
So here are my five tips for financial resolution goal kicking this year:
- Make it visible.
Write the goal down, and break it into monthly, weekly and daily increments. Then display it somewhere visible and accessible in your house or office. Seeing is believing!
- Give it an address.
Lock in the location for your savings or debt repayments to be directed. Set that up in the first few weeks of the year. I can do this with you. Whether it’s an account, an app, a credit card that’s been literally frozen (in a freezer – trust me – this works!), or an extra regular home loan repayment. Whatever it is, and wherever it needs to go, set up the machinations early for the payment or saving early so we can get started.
- X-ray of 2019.
We can’t solve a problem we can’t see. What did you spend in 2019? Where did you spend in 2019? What themes and costs can be eliminated or reduced? Pulling out your bank accounts and doing a transparent review of incomings and outgoings for the year past will allow you to identify and reverse costs that will become hurdles to achieving your 2020 financial resolutions.
- Individual accounts.
Create separate accounts in line with your objectives; a travel account, a savings account, a home deposit account and a separate shopping account (especially if you’re a self-confessed chronic shopper). Segmentation helps with accountability.
- Consolidating debts.
If you’re a homeowner, you may be resolving to pay down your home loan. This can be achieved by direct debiting a little extra from your salary, or by setting up automatic payments. But in this competitive time of low rates, you might be better off refinancing and saving with lower interest. Credit card debts, too, are a common resolution topic. There’s a real opportunity for reducing the interest you’re paying by turning those debts into personal loans, or consolidating them into the home loan, if the credit card is no longer needed. Of course, as always, I can help you with any of your debt related or borrowing needs for your best possible 2020.
Let’s kick goals together in 2020!