New Year’s Resolutions for Your Wallet

No matter what the financial outlook, or what interest rates are doing or the health of the economy, making sound financial choices consistently will always put you in a better financial position.

And while the new year is a time where people tend to set big goals, remembering to set perhaps less exciting but equally important smaller goals for your wallet and actually following through on them is critical to your overall success. 

Any time of year is a good time to start positive money habits but the new year is a great time.  The new year gives you a clean slate to build upon and is a fantastic time to take charge and make positive changes to your finances.

If you’re looking for inspiration, here are some new year’s resolutions that you could consider for your finances: 

1. Implement a Spending Freeze

If you analyse exactly where your money goes over a few months, it’s not hard to notice a pattern.  Without a set budget, we can easily find ourselves spending much more than is necessary, impacting our savings goals or our ability to pay off debt faster. 

How often do you splurge for that extra coffee on your way to work? Do you find yourself going out to eat even after you planned to cook at home? All of these little expenses might not seem like much on their own, but they add up to a lot.

This year, challenge yourself to a 30-day spending freeze. This is a challenge where you only spend money on your necessities. Spend your money only on things you need like groceries, utilities, health and housing.

This forces you to reevaluate those impulse purchases you didn’t even know you were making. Put the money you save at the end of the month towards your savings account, your emergency fund or make an extra mortgage repayment.

2. Assess Your Subscriptions

This is one of the simplest new year’s resolutions for your financial wellbeing because you can do it in just a few minutes. 

Chances are you are paying for subscriptions you’re not even using or using as much as you thought you would.  Why let your money go to waste? Things like memberships, subscriptions, and streaming accounts can add up quickly and can be a waste of money if you aren’t even using them.

Remember, you can always re-subscribe in the future if needed.

3. Check Your Credit Cards & Cash Back/ Rewards Programs

Are you making the most of your credit cards or other cash back/reward programs? While many Australians struggle under credit card debt, credit cards are a great way to earn cash-back and rewards if you use them responsibly.

It’s also worth checking to see if there are any options for debt consolidation or low-interest balance transfers that make paying off your debt less expensive.

As always, it’s helpful to work with an expert to create a plan for managing your debt in the new year.

4. Eat Out Less

Another common resolution that helps save money is to reduce the amount you eat out. Australian households spend an average of almost $100 every week on restaurant meals and takeaway *(ABS). That’s money you could be saving or investing in your financial freedom.

Eating at home is both more affordable and healthier and with the bonus of making extra for lunch the next day, your wallet and your health will be thanking you!

5. Build Your Emergency Fund

Finally, another resolution that should make it onto the list is to build an emergency fund.  An emergency fund is different to a savings account. It’s money you put aside specifically in case of an emergency so you don’t have to use up your income, sacrifice your savings or get into debt if something unexpected happens.

A good baseline for your emergency fund is having at least 3 months of expenses covered. However, saving just $1,000 will do wonders for your financial peace of mind.

If you can’t do them all just pick one and give it a go, it could make a huge difference to your financial wellbeing.