New Year, New Financial Goals

30 January, 2020
So here we are, already a couple of weeks into 2020. Christmas is still lingering  - as are the extra kilos from all the merriness!

What does this year look like for you? 

Now is the time to sit down and decide what you want out of 2020 - and how to get it.

Just as you set goals in your personal and professional life, financial goals can help keep you on track to success. 

Do you have any significant purchases you want to make this year? It could be as simple as starting small, like paying off debt - or saving for a house.

Here are some ideas to get you thinking. 
 

Starting small? 

If you have a personal loan or credit card bill, this takes priority.

Before you set any bigger goals, like an overseas trip, this debt should be taken care of. Or at the very least reduced considerably. 

How to achieve this? Practically, this is easy. Set a weekly/fortnightly/monthly budget, depending on how often you get paid. Work out an amount you can spare each pay cycle and set up a direct debit that automatically transfers the money across.

But it’s not enough to just set this up, if you’re not going to stick to it. You may need to change your attitude towards spending, just for a short period of time. 

What can you do without? Can you save any money on entertainment?

If you can, set yourself a limit on spending too. Allow a portion of your income to go towards treats or luxury purchases, so you don’t feel your completely missing out - and you don’t need to dip back into that credit card.
 

Ready for medium?

Maybe it’s time for a new car. Or are you planning a wedding?

These are the kinds of purchases that require some planning. 

The first step - set yourself a budget, and make sure it’s achievable. This is crucial! If you go too high and overextend yourself, you’ll find yourself in a pickle once it’s time to hand over the deposits. 

The best way to plan a wedding budget is to prioritise - what are the ‘must haves’, and what are the areas you’re prepared to compromise on, to lower costs?

If you want the expensive dress, maybe you can compromise on a smaller venue? Do you need to have an engagement party? Can you reduce the guest list?

Do your research and make phone calls! You need to be across how much everything costs, to ensure your budget is realistic and has accurate amounts set aside for each item. You may be surprised at how much a wedding photographer charges!
 

Time to go big?

We’re talking about the motherload here. This will generally be one of two major life goals.

Owning a house, or starting a business. 

Both require extensive planning. Both are a major commitment. 

If you’re planning to start your own business, you’ll either be looking to take out a business loan, or injecting a large chunk of your hard earned cash into it. This is a big investment. 

Make sure you do your research - figure out start up costs and the magical figure you will need to make a profit.  

It might be worth sitting down with a lender and getting some professional advice. At CWCU, we have a dedicated loans team who can guide you through the business process and assess your position. It’s really important to understand what taking out a business loan means for you and how the repayments work. 

Once you’ve ascertained how much you need to get started - you can get to the fun stuff! 

If it’s a house you’re dreaming of - there are other considerations to take into account. There are so many different home loan options out there - it can be hard to figure out which one is the best deal - and which one is right for you. 

Again - do your research! The loan with the lowest interest rate is not necessarily the superior product. There are other things to take into account, like redraw, interest offset - and service quality. 
 

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