Summer is usually the time when we are most motivated to improve our lives, whether it's by losing those extra winter kilos or finishing that weekend renovation you started. So while you are reassessing and changing other areas of your life, why not look in to your financial health with a quick check-up?
Creating budgets and saving money aren't usually things we like to talk about, but checking in on our financial health every once in a while could mean the difference between reaching our financial goals and being unaware of what our financial goals even are.
So if it's been a while since you evaluated your financial position, where should you start?
Before you start budgeting, set some financial goals. These could be short-term goals like a weekend vacation, a new pair of shoes or a new car. Also look at the long-term goals, such as owning your home, being debt free, or diving into property investment.
Set a timeframe in which you want to achieve these goals and design your budget accordingly. Having clear, achievable goals will keep you on track to financial freedom and help you live your ideal lifestyle.
A budget is a great way to keep track of all of your expenses and income. Use this on a weekly, fortnightly or monthly basis to monitor your cash flow. It is important to consider all expenses you may incur, remembering to include things like registration, insurance and taxes, which may not be due on a regular basis.
Setting a budget is also a great way to find areas where you might be able to cut back, allowing you to find the extra money to achieve your financial goals. This may be as simple as skipping your afternoon coffee or reducing your gym membership. Every little saving helps you get closer to your financial goals.
The next area to consider in your financial health check is your mortgage and personal loans. Are these still working in your favour? Could you be getting a better deal?
You should seek professional advice when it comes to evaluating your loans, as there might be hidden terms and conditions that could limit what you can and can't do. This could include being locked in to your loan for a certain period of time, break costs or switching fees if you choose to switch your loan.
Summer is a great time to evaluate your financial health and make changes to achieve your financial goals sooner. If you would like help with your financial health check, give us a call today.