It’s common for us to make New Year resolutions to improve our personal lives, but how many of us actually include financial goals on that list other than the vague ‘Save more money’?
We’ve found a few negative financial habits that many of us sometimes aren’t even aware we’re doing. If you find yourself familiar with a few of these, we suggest adding them to your New Year resolution list to fix!
1. Not having a budget
It’s important to have a long term budget for the year so that you can better stick to your goals. If you write down exactly how much you need to spend and save for each week of the year, you’re more likely to follow through. Make sure you mark down any extra costs that you can predict such as when the car registration will be due.
2. Not having your KiwiSaver sorted
We’ve said this before and we’ll say it again – just because you’ve opted in to KiwiSaver, that doesn’t mean that you’re getting the most out of it. Make it a priority this year to have a look through your current KiwiSaver scheme and see which fund you’re in. Be sure to also check out the different fund options to see if there’s one that might work better for you.
3. Not having insurance
This is something you really need to get sorted this year. You never know what could happen and if you’ve got the things you value covered, such as your health and your income, you can rest assured that your loved ones will be taken care of. Make a plan to sit down with one of our friendly financial advisers this year and discuss your options – insurance is more affordable than you think!
4. Impulse buying
We’ve all fallen prey to impulse buying at some stage of our lives, no matter how strict our saving rules. Try to figure out what makes you buy things impulsively (your mood, a one day sale, shopping with friends) and adopt the 24 hour rule – wait 24 hours to make the purchase and only buy it after you’ve thought about whether you really need it.
5. Only paying the minimum
If you’ve got a credit card that you use regularly you’ll know the options you have with the payments – you can pay the minimum by a certain date but you’ll accrue interest, or you can pay it off in full each month. To avoid getting into debt and dealing with often extortionate interest rates, it’s a good idea to get into the habit of paying your credit card off in full every month.
Want an overhaul of your finances this year? Get in touch with us today and we’ll sort you out!
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