The lead-up to Christmas is frantic but for most people life slows down between Santa and the New Year which is a great time to plan a financial reboot.
Taking the financial stress out of your life will transform the way you live. You’ll be happier and have more confidence to take on the world. All it takes is the self-discipline to put these into action.
10 reboot resolutions
If you’re in a relationship go through the process as a team so you’re both on the same financial wavelength right from the start.
1. Set financial goals
Just like in your personal life, setting a goal gives you something to aim for and motivates you. It could be to get out of debt or a savings goal for something you’re dying to have. Paying off the mortgage as soon as possible or making contributions to superannuation are two of the best savings goals to have. Concentrate on the mortgage first, and when that’s under control make superannuation the priority.
2. Get control of your finances
Know exactly where your money is going each day. Sit down with your bank and credit card statements and list everything you’re spending money on, from rent and food to clothes, coffees and transport.
Carry a notebook for a month and write down every time you spend on incidentals, a newspaper, coffee, sandwich etc. At the end of the month look at your list and I bet you’ll be amazed at where your money has gone, and you’ll see some obvious areas to save. This is the best way to plug financial leaks.
3. Write a budget – and stick to it!
So many people ignore writing a budget and then wonder how problems sneak up on them. Sit down and go through the list of expenses. Figure out where your money is going, what you can cut out of your spending, then write up a budget that tells you how much of your wage goes into the savings account, how much to your necessary expenses, and how much to play with. Most importantly, stick to your budget!
4. Shop around
Whether you’re at the grocery store, wondering what to do with your insurance renewal, filling up the car or organising your utilities, make sure you always do your research ahead of time and get the best deal possible. Comparing prices should be at the top of your 2025 to-do list.
5. Never, ever automatically renew anything
When it comes to energy and insurance, never just accept a renewal or price hike. If you’ve been with the same retailer or provider for some time, ensure you’re still on the best possible deal with them or compare your options to see if you could save by switching to another plan or policy.
6. Fix your banking
You are mad to be putting up with a bank account that costs you money. Most of us have a range of different savings and transaction accounts with a bank. Each of them probably attracts a certain level of fees. It’s time to assess all these accounts which have built up in number over the years and see which ones are really needed.
Consolidate accounts or shift them to lower or no-fee, online accounts which usually earn great interest.
7. Stay away from credit
Credit cards are dangerous. If you’re in financial trouble the first thing you should do is cut them up. If you are disciplined and always pay them off on time, then you should be fine.
Think of replacing credit with a debit card which can be used like a credit card but only ever takes the money out of your own account.
8. Beat the mortgage
The same goes for the mortgage. Always think about how you can wipe some time off your mortgage by paying a bit extra.
Do anything to increase monthly payments, pay fortnightly or just pay off a bit extra when you can, and it could end up saving you thousands.
Also ask your lender for a better deal on your mortgage.
9. Start a savings program
It takes discipline but it’s worth it. Here are a couple of ideas:
Each pay day, organise to have 10 per cent of your salary automatically transferred into a separate savings account.
At the end of the day, empty the change from your pocket or purse and put all the loose gold coins in a jar. When the jar’s full, bank the coins in a savings account. Watch it grow.
10. Earn more money
Think about ways you can boost your income, either within your current job or by doing something else on the side.
Sit down with your boss and discuss whether you deserve a pay rise and what you can do to earn it. Or you could start up a small business and moonlight in your spare time.
