Covid has bought some challenges to the doors of many of us, here are some useful tips for those about to receive their tax returns and want to improve their financial position in the coming year.
1: Pay down any high-interest-accruing outstanding debt
Whether it’s an outstanding credit card balance or a personal loan debt, it’s “crucial” to create some breathing room in your monthly budget. Not having huge debts can also provide you with some peace of mind if you are worried about the current job market.
2: Reprioritise your savings goals
Given international travel is off the table, the new financial year could be the perfect time for you to re-examine your spending priorities. Maybe that money that was allocated for travel could now go towards a long term goal? Or help you to boost your emergency savings fund?
3: Nominate a ‘financial’ buddy
This arrangement is similar to a gym buddy or accountability partner. You can start this process by having a frank conversation with a close and trusted friend or seek advice from an adviser who will motivate you and keep you on track while you work towards hitting your financial benchmark.
4: Live within your means
Do a financial audit to separate your wants from your needs – this should help you to work out where you can or should cut back on spending. Don’t leave out any expenses from such a review as there are often real savings to be made that will have little to no impact on your everyday life.