We don’t know about you guys, but last year just flew by at iconic and now here we are in 2016!
Whilst it seems as though time is going insanely quick, the New Year is always one of our favourite times of the year. Not only is the weather good, but it is the perfect time for reflecting on the past year, setting new goals for the year ahead, and trying new things.
To kick start our blog for the year, we wanted to share with you some of the things that we believe are important for those of you wanting to improve your financial stability and grow your wealth in 2016. *
1. Spend less, save more
This is a hard one. We all struggle when it comes to cutting back on our spending, but spending less means saving more. It is always good to have some money accumulating in the background that you can use to go on a holiday, get married, by a new home etc.
The problem can come when you can’t see where you can cut back your spending in order to save. A good way to tackle this is to track your spending over a month, and then review it at the end. Ask yourself whether or not each dollar that you spent was necessary or worth it, and if it wasn’t… don’t spend on that again the next month. You will need to prioritise your outgoing costs and try to determine the things you need versus the things you want.
2. Draw up a budget
Drawing up a budget is something that most of us are familiar with. You suddenly have that light bulb moment that you need to budget to start tracking your spending and saving more… so you sit down and work out that if you stick to what you’ve written down you will have $1,200 left over at the end of the month. Then, it gets to the end of the month and that $1,200 seems to have gone M.I.A. Even if you have mastered the art of budgeting by now you can probably still recall a time where you faced this struggle.
The trick is to be a little strict on yourself, but to reward yourself when you stick to your budget. It can help to divide your money up in to what needs to stay in the bank for bills, living and saving, and then take out cash for your allocated every day spending budget. It is a case of finding what works for you, and making sure you stick to your budget.
If you are wanting to draw yourself up a budget feel free to download our free budget calculator tool at the end of this article to help! To use the interactive features of the PDF you will need to download and save the document to a PC or latop.
3. Make sure your home loan is working for you
If you are an existing home owner, the New Year is a great time to revisit your mortgage solution and make sure that it is still working for you. With things constantly changing in each of our lives, and with lenders frequently changing their interest rates and products, what was the most suitable financial solution for you 2 years ago may not be the most suitable now. It is important to regularly review your home loan and other finances to make sure that they continue to work for you.
Refinancing your home loan to a more suitable solution could potentially save you money on repayments, or may allow you to lock in a low fixed rate. **
At iconic our finance brokers offer a complimentary mortgage review service. If you are an existing home owner and would like to book an appointment to review your current financial solution please make and enquiry, we would love to help!
Whether it be putting some savings in a high interest account, buying shares, or even taking part in an educational course… an investment into something should return something of value if it is done well. You invest in things to generate a return on that investment, and you can invest in yourself to develop your own skills and abilities.
There is always a level of risk that comes with an investment, especially if you are investing money. If you would like to speak to someone about effectively investing this year with minimal risk, we have a dedicated team of financial planners available to help you. To enquire about meeting with one of our financial planners you can email to firstname.lastname@example.org, our planners are ready and excited to help you make your money work for you.
5. Have fun
This one is important. Sometimes we can become so focused on one area of our lives, like finance, that we stress ourselves out over it. Money is important, and nobody wants to be in debt or experiencing financial hardship. However, as the old saying goes “money doesn’t buy happiness” and it is important to remember to have fun and relax as well as remain focused on improving ourselves and our personal finances.
Have fun this year, but set yourself goals and work hard to achieve them.
The team at iconic home loans is always available to assist when it comes to managing your finances. If you require anything, or even just have a question to ask, please do not hesitate to contact our offices on 1300 663 943.
Happy New Year guys, and all the best for 2016.
Iconic home loans
* The information provided here is general advice only and you should seek independent financial advice before making any decisions in relation to your personal finances.
** Finance availability is subject to application meeting lenders qualifying criteria and all approvals are at the discretion of the lender.