How Happy Are You with Your Finances?
As we step into spring, it’s the perfect time for a fresh start, including taking a good look at your financial well-being. Are you satisfied with how you’re managing your money? Do you feel you’re getting the most out of your income? With the warmer months ahead, now is an ideal moment to review your Financial Warrant of Fitness and set yourself up for a financially healthier season.
Set Clear Financial Goals
Before diving into the specifics, take a moment to consider your financial goals for the rest of the year, and into 2025. Whether you’re saving for a summer holiday, planning for retirement, or simply aiming to build a stronger financial cushion, having clear objectives can guide your decisions and help you stay on track.
Credit Card Management
Credit and debit cards often see increased use during the end of year holidays, but spring is a great time to get ahead of the game. Be strategic about how you manage this debt. Some cards offer lower interest rates than others, so it’s worth taking the time now to shop around and ensure you’re getting the best deal.
Banks sometimes offer deals where you can transfer your credit card balance to a rival bank at a far lower interest rate for a fixed period. These offers can be worth considering if you feel your credit card balances are getting out of control. Remember, paying only the minimum balance each month can lead to significant interest charges over time. Whenever possible, aim to pay off the full balance to avoid costly interest accrual. If you’re worried about your cards, get online and start comparing your options.
Review Your Insurances
Insurances can be another major financial commitment. For this reason, industry professionals often recommend an annual review of your policies. New personal and business insurance policies are regularly coming onto the market, and depending on your circumstances, they might offer wider coverage for less cost than your current policy.
Additionally, many people don’t fully understand the extent of the coverage they’re paying for and might not realise what they’re entitled to claim. While the web is a great resource for shopping around for car, home, and contents insurance prices, working with a broker can be even more beneficial. A broker can help you navigate the complexities of home and contents insurance, ensuring you have the right coverage for your needs. They can also assist with claims, helping you avoid pitfalls and save time and money in the long run. By leveraging their expertise, you can gain peace of mind knowing you’re making the most of your insurance policies.
If you’re interested in exploring what a broker can do for you, reach out to the team at Over Fifty Insurance.
Track Your Spending
A great way to understand exactly where your money is going is to carry a small notebook with you wherever you go and record every cent you spend for three to four weeks. At the end of this time, tally up your costs in various categories like food, entertainment, and utilities to find out where you spend the most. This exercise will give you the insight needed to create a realistic budget that works for you.
Evaluate Subscriptions and Recurring Expenses
Take a moment to review any subscription services you may have—whether it’s streaming platforms, magazines, gym memberships, or other monthly commitments. These can add up over time, and you might find opportunities to cut costs by canceling those you no longer use or need.
In addition to subscriptions, it’s also worth evaluating your power provider to ensure you’re getting the best deal. The market is always changing, so checking regularly can help you save. The Powerswitch website, brought to you by Consumer NZ, is a 100% independent tool allowing you to compare different power plans and providers. By using Powerswitch, you can easily see if there’s a better option available, potentially saving you money on your electricity bills.
Leverage Online Financial Tools
Spring is a great time to explore new resources to help your dollar go further. Sorted offer free online tools and budget guides to help you take control of your money. Whether you’re looking to create a budget, plan for future expenses, or find ways to save, these tools can provide valuable guidance.
Start the New Season with a Financial Plan
As you enjoy the warmer weather and the sense of renewal spring brings, take some time to get your finances in order. Setting clear goals, managing debt wisely, and reviewing your insurance and spending habits can pave the way for a financially secure and stress-free season.
Tony - 12 years ago
Just a clarification regarding debit cards, they can not add to ones debt, as you can only spend the available balance. Admittedly spending your saving will come back to bite you when you have no cash to pay other bills.
As for the lure of cheap interest to change your credit card to another bank – beware of this one. While the transfer balance is charged at a very cheap rate it is only worth while doing if you do not use the card until your original balance is paid off. Any purchases are charged at the going rate, and payments come off the oldest debt (the cheap interest rate), first. So you could end up in just as bad a situation, though the cheaper rate to begin with will ultimately reduce your repayments