Whenever we think of New Year’s resolutions, the first thing that comes to mind is a health kick. But here are three (easy) New Year’s resolutions that’ll help improve your financial wellbeing in 2021.
Below we’ll run you through three straightforward, and most importantly, achievable New Year’s resolutions to set yourself this year (and not a diet or boot camp in sight!).
1. Get a home loan health check
Quick question (no judgement): do you know the interest rate on your home loan?
Don’t stress if you don’t, studies show that about half of mortgage holders can’t recall their home loan interest rate.
But it does beg the question: if you don’t know your rate, how do you know whether or not you’re getting a good deal on your loan? You could very well be paying too much.
This is why making a home loan health check your New Year’s resolution is so important, particularly with interest rates at record low levels after a series of RBA cash rate cuts.
Indeed, a recent RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.
So if it’s been a while since you’ve refinanced – so long that you can’t recall your rate – then it’s probably time to get in touch for a home loan health check to see if you can get a better deal.
Rest assured we’ll make it quick and painless. Simply get the ball rolling by giving us a call today.
2. Set yourself a financial or lifestyle goal
If you’re not back at work yet, use this precious time to carefully consider what financial goals you want to achieve in 2021.
With renewed post-COVID optimism on the horizon, now might be time to launch that business idea you’ve been thinking about.
Perhaps it’s time to upgrade from an apartment to your first house. Or with international travel on hold for a while, maybe now’s a good opportunity to explore Australia with a new set of wheels.
Whatever your flavour, consider taking stock of what you want to achieve in 2021 so that you can work out a plan to achieve it.
And if you’re unsure about how you’ll finance that goal, we’re here to discuss your funding options. We can help you work out whether you might be able to make them a reality in 2021, or if it’s more realistic to work towards 2022 instead.
Check out this blog on how you need to be careful with ‘buy now, pay later’ purchases and how this could impact your financial goals.
3. Cut back on your microtransactions
Once you’ve identified a big financial goal to hit in 2021, you’ll want to start saving towards it.
But micro-transactions – purchases that are low in cost and trivial in nature – can be a real obstacle.
For example, did you know that buying a $4 takeaway coffee each day costs you a whopping $1460 per year, whereas making it yourself using a french press or aeropress costs just $260.
That’s a saving of $1200.
Other micro-transactions that most families can cut back on include alcohol, take-away food such as Uber Eats, gym memberships, and multiple entertainment subscriptions such as Spotify, Netflix and Foxtel.
With a little bit of budget tinkering, you can save yourself hundreds – even thousands – of dollars each month.
So what’s your first step?
That’s easy – get in touch today for resolution #1: a home loan health check.
There’s a reason tens of thousands of families are currently refinancing their home loans: competition among lenders is fierce.
And by getting the ball rolling on resolution #1, you’ll also be contributing towards resolutions #2 and #3 by saving money that you can put towards your 2021 financial goal.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.