The new financial year has begun!! However, the effects and financial difficulties of Covid-19 will likely continue for some time to come. We are discussing the best tips and strategies to help you improve your financial situation moving forward.
More than ever, it’s important to get to grips with the New Year’s changes and make a positive start to your finances and accounts. Hopefully, the last financial year will provide you with many lessons you can use to help improve your strategies going forward.
If Covid-19 did one thing it showed us that we don’t have enough money put away for a rainy day. In the past, we have thrived on growth, so there has been a challenge to the idea that cheap debt can be accumulated, and money will be available in the future to pay for it, and all will be okay. Consistent cash flow is key! So how do we create it?
Invest in Yourself
In the past year, the Job Market may have been one of the things that changed the most. One silver lining of this year is that people a starting to think and rethink where they currently are in life.
That means there is no better opportunity to invest in yourself than now.
It is just as important to invest in yourself as it is to invest in your finances. The best time to start was yesterday, but the second-best time to start is right now.
You do not have to spend a lot of money to invest in yourself. There are blogs and podcast’s for finances (such as this one!), fitness, money management, self-improvement you name it you can pretty much find anything!
Decide on what inspires you and how you want to invest in yourself and go for it.
Start a Budget – But Not Just Any Old Budget
Budgeting is a key tool to help build focus. What can be hard is finding or creating a budget that can work for you. The last thing that you want to do is follow someone else’s blueprint the exact same way as someone else when it isn’t tailored for you.
Have a go at creating your own budget The exact principles that we use may not work for you, however, the principles of what is needed to include for you to tailor one to your specific household needs.
Invest Your Money
There are people that shy away from investing because of their lack of knowledge. We can defiantly help you with that. Our strategies will help you plan a comfortable lifestyle. We can help assess your current financial position, and determine the right strategy and actions you’ll need to take to get there.
Answering these questions will give you a clear picture of your estimated budget. Figure out how much income will be needed to cover your goals. Finding the right financial planner to assist you with your investment strategy can be vital. Invest in a team of trusted professionals to help you really calculate what you can do and how best to do it.
Take a Look At Your Tax Situation
We all love a good tax refund, but there are other ways to do things! Here are some ideas to make you feel like you are getting a refund while earning more money than you would normally earn.
- Set up automatic transfer or direct deposit into a high-interest-earning online savings account for the extra amount you have on your paycheck.
- Know what tax deductions that you can claim.
- Understand how tax reductions really works.
Find out now how much extra you are paying the ATO now.
Set A Goal
What do you want to accomplish in the next financial year? Do you want to earn more money? Do you want to learn how to effectively budget? Is there a money mindset issue that you want to work on? Or perhaps you want to make your first large investment to help you really help secure your financial future.
First, setting a goal that may be difficult to reach encourages you to put more effort into reaching that goal.
Second, even if you don’t attain the goal completely, you are all but guaranteed to still come closer than you would have if you set a lower goal.
…And then Set Milestone on Your Way to That Goal
Set milestones for yourself. Think of milestones as a smaller goal that helps you get to your larger goal. Like smaller tasks that you can do to help you stay in line with your overall goal.
For debt payoff, some of these milestones might be:
- Setting up a budget to know how much extra money you have
- Find out how much per month you need to set aside to get all your debt paid off in 24 months
- Celebrate! (you deserve it) after you pay off a debt
For a goal of learning to stick to a budget, some milestones might be:
- After two months, you’ve only had to find money to cover overspending on three categories
- By the six month mark, overspending is rare and you’ve set up an automatic transfer for saving
Determine what our milestones are going to be for your specific goal.
Cut Things Out Of Your Life that Don’t Work
You can make sure that you have a great 2021 by cutting out everything that isn’t serving you.
Clutter, relationships, spending, debt, bad food, clothing that no longer fits or is too old to wear, finance advice, discouragement, types of budgets, and everything in between.
Removing the things from your life that don’t matter cuts the weight trying to hold you down in whatever you are trying to accomplish in life.
Most of the things you can cut out have a direct or indirect connection to your finances.
Here’s to an amazing New Financial Year, use as many of these tips that you can and you will be ahead on last year without even trying.
We know that it can be stressful; that’s where we come in…Rather than having to individually deal with each piece of the financial puzzle, Chase Edwards brings all your financial services together under one roof. What does this mean for you?
- Deal with the same person/team for all your financial needs
- Become educated on how to best make your money work for you
- Complete access to investment opportunities
- Have all your financial services taken care of
- Achieve your goals faster as all your finances are working together towards a common goal