Money resolutions to get you on track for investing

Money resolutions to get you on track for investing

We’re in February now and for many people it’s prime time for letting those New Years resolutions fall by the wayside as we settle into the routine of the year.

Did you keep your resolutions? Did you make any resolutions at all?

Never fear – if you did make them and didn’t keep them, maybe it’s time to look at some bite-sized resolutions which will set you on your way to healthier money habits and investing in property.

Let’s work through a plan to get your money habits on the right track.

Set goals

This is an important first step when making changes to any part of your life. Where do you want to be in five years? Two years? One? What does your future of finances look like? How about your lifestyle? Income?

Maybe your goal is to stop living paycheck to paycheck or you plan to own a slice of Mosman. Figuring out what your end goal is helps you to keep motivated when you’re deciding between Uber Eats and cooking the meal you planned on making. Write down concrete goals for the different areas of your life and let’s work through the steps to achieving these goals.

Set a budget

This isn’t a new concept and no doubt, it’s one that you’re sick of hearing. But being realistic about your spending habits and identifying ways to cut back on unnecessary purchases to save money is key.

Get a copy of your transaction statement for the past 3 months. Use a highlighter to mark every purchase that was unnecessary or could’ve been substituted for something more cost effective.

For some people, this may mean looking at the rent you pay and considering alternative options. Getting a roommate, moving in with friends or back in with parents, living in a sharehouse. Perhaps it means cutting back on nights out or bringing lunch to work.

See a mortgage broker

If you do have a home loan, seeing a mortgage broker to get a better deal can make a huge difference to your cashflow. A mortgage broker can do the hard work for you in sourcing a better deal and help with the paperwork too.

Taking some time to share information with your broker means you can reap the rewards of a lower interest rate or more appropriate loan structure to help you consolidate debts.

If you don’t know a mortgage broker, send us a message here and we can help you find one.

Pay off non-deductible debt

The first debt to pay down is the loans you cannot claim back come tax-time. Think credit cards, personal loans or car loans. These loans attract interest and can’t be used for building equity which can be advantageous when you apply for an investor loan.

Set yourself realistic goals and timeframes to pay these down and stick to your plan.

Save money

Unfortunately, there’s no groundbreaking hack I can give you to get on track with saving. Discipline is key to building good money habits and making sure you get back on the horse if you take a tumble with spending.

Team up with your partner to work at it together to achieve your goals. Share your plans with a friend who can offer their support when the online sales are looking great or when you want to blow it on a holiday.

This simple plan can be implemented by everyone. The people who succeed using it will have built healthy money habits and practiced discipline consistently.

Conclusion

Setting goals and a budget is key to starting out when getting your finances on track. This provides the framework for moving forward with your money. Seeing a mortgage broker if you have a loan and paying off non-deductible debt will ensure that the money your paying back is working hard for you.

Finally, saving your money allows you to build up a deposit for an investment property or your first home. Keep your goals in mind when you’re tempted to splurge and practice discipline consistently for a consistent result!

Are there any other money resolutions you’ve made this year?

Nathan Lewes

Nathan Lewes

Managing Director nathan@assetbase.com.au

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