Christmas. The one time of year we all look forward to but also kind of dread at the same time. While the day itself is usually full of fun, laughter, good food and good company, the lead up to it can be quite stressful, especially if you don’t have your finances in order. You’re racking your brains trying to think of present ideas for your partner, son, daughter, mother, father, cousins, colleagues…the list goes on – and not only this, but you’ve got to organise a feast fit for the entire family – it all adds up!
As holidays and the new year approach, it’s easy to get distracted from your financial goals, but it’s actually the perfect time to put a few simple plans in place for a less stressful Christmas and a positive start to the new year. Therefore, we’ve put together some helpful budgeting tips to get you through the ‘silly season’ and onto a healthy and wealthy new year.
CHRISTMAS ON A BUDGET
Step one: Clean out the freezer
If you’re the lucky host this year, it’s time to get smart! Make some room in the freezer and hit the shops in search of bargains to fill it with. Don’t wait until the last minute when you’re forced to buy over-priced, in demand products - start searching the shelves now to stock up and save!
Step two: Don’t go over the limit
Either set an agreed limit with the family as to how much you’ll spend on gifts for one another, or simply set your own personal limit –plan ahead and figure out exactly how much of your income you can allocate to gifts without it affecting your day-to-day living costs, then it’s easy; just spend within your means.
Step three: BYO
Ask your guests to bring something along. Whether it’s something as simple as drinks, a dessert or even a dish to add with the main meal - it’s one less thing you have to pay for and one more thing you all get to enjoy together!
A HEALTHY AND WEALTHY NEW YEAR
First step: Review
Start by calculating your net worth, including all of your assets (property, cash etc.) and liabilities to calculate a final figure. Save the final figure somewhere so it’s easily accessible next year, and you’ll have a simple and effective way to measure your progress against a set goal. This should also give you an idea of where your finances currently stand.
Second step: Research
Pick a couple of items from your financial portfolio, for example, your credit card or mortgage, superannuation accounts or insurance policies etc., and do some research to find out if you’re getting the best possible deal. Interest rates, fees and risk profiles should be checked at least every few years, as individual circumstances (as well as rates and fee structures) can always change. It’s important to make sure that what you have is still working for you in the right way.
Third step: Familiarise
Spend some time getting to know your investments. How much is in your super? How is it invested? Are you on target to achieve your financial goal? What difference could you make by re-balancing your investments?
Fourth step: Educate
Now that you know where you stand financially, get some professional advice… Ask questions and seek clear and relevant answers as if you’re looking after the world’s most important managed fund… because you are!