Make Some Financial New Year Resolutions

With the holiday season in full swing, it’s easy to spend more than you realise – which could make it a very lean and difficult start to 2010 if haven’t already put some thought into saving and budgeting.

If you’re already concerned about mounting holiday season debts, there are some sound steps you can take to take control of your finances in preparation for the New Year.

Here are some things to remember when spending money over the New Year holiday period, to help you avoid the debt hangover – and some budgeting tips on how to help get out of it:
1. Your monthly credit card statement will outline the ‘outstanding balance’ and the ‘minimum payment’. You should aim to repay the outstanding balance by the due date whenever possible to avoid paying interest. If you can’t do this, try to pay more than the minimum payment to avoid paying excess interest.
2. Consider consolidating your debts by taking out a personal loan. If you have a large credit card debt for example, you could save a lot of money by paying off your credit card debt and paying back a personal loan at a lower interest rate;
3. Make a budget plan for 2010, be brutally honest with yourself and in detail outline all your outgoings and incomings. Try to set an amount aside each week – and stick to your budget;
4. It may sound obvious, but try to be intentional with your purchases and don’t buy more than you need – especially if you’re using credit.
5. With the money you set aside each week, check out term deposit offerings and put your money to work for you with a great interest rate.
You can access more financial advice through the Take Control series, which includes advice on budgeting & saving, buying a car, buying property, protecting your assets and wealth creation.

January 11th, 2010 | Leave a Comment »