New Year’s resolutions that will boost your finances in 2020

Dec 29, 2019
Get your finances in order for the new year. Source: Getty

After an expensive holiday period, getting your finances in order for the new year always seems like a good idea. But it’s easier said than done. With that in mind, we’ve rounded up some handy money saving tips to help make 2020 your best year yet.

Set financial goals and actually meet them

It may sound simple, but the first step is actually making the commitment to improve your finances. The best way to achieve your financial goals is by making a plan. For example, set specific financial goals for the short, medium and long term. This will give you a picture of where your finances are at and what needs to be done in order for you to meet your goals.

Pay off debt

If you want to get on top of your finances in 2020, get rid of any outstanding credit card debt you may have. If you have multiple credit cards to deal with, start off with one credit card, pay off the debt and then move on to the next one.

If you are unsure which card you should pay off first, you generally want to pay off the most expensive card first as it will mean forking out less overall in interest charges. Once one card is paid off, why not remove it from your wallet altogether?

Start a side gig

If you’re looking for a way to make some extra cash, why not start a side gig? If you have a knack for crafting, why not set up a stall at your local markets, or if you have a spare room, perhaps transform it into a boutique hotel. Airbnb allows users to list and rent out entire properties or a select number of rooms on a short-term basis, usually as a cheaper alternative to hotels for anyone on holiday. In many instances, short-term Airbnb listings will be more profitable than if a house or room were rented out to long-term tenants.

However, if you’re short on time, selling your used items online is another great way to boost your savings. One way of swapping your unwanted items for cash is to list them for sale on eBay. Another option is Facebook Marketplace which allows users of the hugely popular social media site to advertise their items for sale, free of charge. Or you could set up a good old Aussie garage sale and advertise with flyers in your local area. After all, one man’s trash is another man’s treasure!

Watch your everyday spending habits

Start by reassessing your weekly spending and look for areas where you could potentially cut back. For example, if you buy your lunch regularly or a coffee every morning, you should think of giving up these habits. Make your coffee and lunch at home and use your savings to pay down your debt – you’ll be surprised how much money you can save. Your social life might suffer for a while as you tighten your budget, but your future self will thank you.

You can also reduce your spending by cancelling memberships you’re not using, such as the gym or local clubs. Instead head to your local park and craft your own workout. Alternatively, there are a number of free or low-cost exercise programs available around the country.

Important information: The information provided on this website is of a general nature and for information purposes only. It does not take into account your objectives, financial situation or needs. It is not financial product advice and must not be relied upon as such. Before making any financial decision you should determine whether the information is appropriate in terms of your particular circumstances and seek advice from an independent licensed financial services professional.

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