Financial Resolutions For 2022

Do you have any financial resolutions for 2022? The year is now well and truly underway, but there’s still plenty of time to make some achievable financial resolutions that can put you on the path to financial freedom.

At Finance Finance Finance, we understand how the uncertainty of the pandemic during the last few years has impacted many Australians and their hip pockets. And if you feel like your finances have spiralled out of control, you’re certainly not alone.

In this blog we share five (5) tips to help you turn over a new leaf and regain control of your finances.

Financial Resolutions For 2022: Top 5 Tips for Achieving Your Finance Goals

  1. Work out a personal budget

Drawing up your budget is an effective way to see how much money you’ve got, where it’s going and where you can curb spending.

  1. Make note of your income and when you’re receiving the payments
  1. Calculate expenses for your everyday essentials such as food, mortgage payments or rent, transport, medical costs and school expenses
  1. Determine how much money you’ve got left over and create a spending limit for items you want rather than need.
  1. Figure out how much money you have remaining and establish a savings goal
  1. Have dedicated bank accounts for everyday expenses and bills, spending and a high-interest account for saving.

For more advice on budgeting, head to moneysmart.gov.au.

  1. Curb spending and grow savings

Now you’ve figured out your budget and how much money you’ve got for the necessary items in your life, it’s time to think about those “want” items or expenses and if you’d be better off saving the money instead of making the unnecessary purchase.  Popping the money in a savings account rather than forking out on a new pair of shoes (which will possibly end up gathering dust in the near future), is going to mean you’ll have more money for rainy days and unexpected life events like an injury, illness or unemployment.

  1. Boost your credit score

When your credit score is lower, a lender is not going to as feel confident giving you a loan.  To decrease the perceived risk, you’ll need to work on improving your credit score.

Some ways to increase it are as follows:

Keen to read more about this? Click here.

  1. Take charge of your credit card debt 

As discussed above, your credit card debt is one of the items which will impact your credit score, so it’s really important to make those monthly payments on time and in full.

The due date for your next payment should be easy to find on your statement or in your online banking. To ensure you don’t skip a payment, set up a regular transfer that’s more than your monthly repayment. It’s also a good idea to add extra payments, when possible, to try to reduce the debt faster.

  1. Assess your interest rate and refinance if you can do better

Have you had a look at your interest rate lately? Does the percentage start with a 2? If not, you can probably find a better rate.

If you need help with home loans and refinancing then we are more than happy to discuss your personal situation. Click here to read more about our home loans process, or give us a ring on 1800 230 872.

Got any other questions about our financial resolutions? Send us an enquiry here.