Sometimes the post-Christmas hangover lasts well into January and beyond – not from a few too many proseccos; but debts and spending.
If you spent up way too big in Christmas – or just have a bit of trouble tightening the purse strings, we have a few fabulous and easy tips to get your finances back on track for 2022!
Getting the good, bad, and ugly picture
It’s just like looking under the bathtub – you gotta know what’s there before you can clean up your act! That means getting a complete picture of your finances. How much comes in each month, how much goes out, where you owe debts to, where your investments are, the whole palaver.
Get a few months’ worth of bank statements – either on paper or using your online NetBank – so you can do a complete financial check-up. Unsure how? Use this PDF as a guide.
Setting real limits
Budgeting. Not just for governments to blow out – but for individuals to follow and get back on track. Now you know money comes in each month and where it all goes out. By identifying how much goes out, you can set limits on luxuries, Uber Eats for dinner every dinner, the five streaming services that get neglected for Instagram scrolling, and that pair of shoes you just HAVE to buy (you really don’t.)
With different pools of money for certain expenditures, you can redirect some of your freed up cash to paying off debts, improving yourself, or saving for something special (not shoes!)
Consolidate your debts
If you are juggling lots of credit card debts which eat into your savings, consider taking out a debt consolidation loan. This is a personal loan that rolls all your existing credit cards or small debts into one loan so you can make one simple payment each month.
The first thing you should do is compare variable rate personal loans – as most variable rate loans won’t penalise you for paying off your loan early, which can save you even more in interest – and approach a broker that can help you with debt consolidation loans. It not only helps your finances but can also boost your credit score over time, which is helpful if you’re saving to buy a home.
Review your utilities and energy usage
It feels like utilities and energy bills keep going up – and if you haven’t reviewed your utilities in at least twelve months, you should compare plans in your area to unlock even more savings.
You can use Energy Made Easy to make these comparisons – and this is a government site so there aren’t kickbacks going to retailers at the end of the day. You should also invest in energy saving devices or habits like washing in cold water, installing low-wattage LED bulbs around the house, foot-switches to avoid paying for TVs on “standby” and so on.
See a financial adviser
The finance information presented here is general in nature. It is not a substitute for financial advice from a licenced financial adviser. A financial adviser can help you with getting your finances in order and setting up your finances for growth and retirement.
Beauty and Lace is an online magazine for women. We hope you enjoyed this article!