4 New Year’s resolutions for financial fitness
As the sun rises on January 1, many Australians will be getting started on their new year’s pacts. The gym will be full of determined resolution keepers; the pavement pounded by brand-new sneakers. But what about shaping up your finances?
How to Prepare Your Finances for Rising Interest Rates in 2023
The start of a new year is a great time to take stock of your finances and make some resolutions for the year ahead. With interest rates on the rise, it's more important than ever to be prepared.
Here are four simple new year's resolutions that can help you keep your finances fighting fit in 2023:
1. Ditch unnecessary expenses
One of the easiest ways to save money is to cut back on unnecessary expenses. Take a close look at your spending and see where you can cut back. Maybe you can cancel some streaming services, eat out less, or make your own coffee instead of buying it from a café.
2. Build an emergency fund
An emergency fund is money that you set aside for unexpected expenses. This could be anything from a car repair to a job loss. Having an emergency fund will give you peace of mind knowing that you have money to cover unexpected expenses.
3. Pay down debt
Debt can be a major financial burden. If you have debt, make it a priority to pay it down as quickly as possible. This will free up more money in your budget and help you save for the future.
4. Review your home loan
If you've had your home loan for a while, it's a good idea to review it to see if you're still getting the best deal. You may be able to save money by refinancing to a new loan with a lower interest rate.
In addition to these four resolutions, there are a few other things you can do to prepare your finances for rising interest rates:
Automate your savings. This will help you save money on a regular basis without having to think about it.
Increase your income. If you can, find ways to increase your income. This could mean getting a raise, starting a side hustle, or working overtime.
Be prepared to make changes. If interest rates continue to rise, you may need to make some changes to your budget. This could mean cutting back on expenses, increasing your savings, or refinancing your home loan.
By following these tips, you can prepare your finances for rising interest rates in 2023. This will help you stay on track financially and reach your financial goals.
Here are some additional tips for saving money and preparing for rising interest rates:
Shop around for the best deals on insurance, utilities, and other expenses.
Make a budget and stick to it.
Set financial goals and track your progress.
Don't be afraid to ask for help from a financial advisor.
An RBA study found that compared to new loans, borrowers are charged an average of 40 basis points higher interest for loans written four years ago.
Arranging regular home loan health checks can potentially uncover opportunities for savings.
Not only could you secure a lower interest rate, but you could refinance to a mortgage with other features that may be a better fit for your circumstances – such as an offset account, fixed period, or a linked debit card (to name a few).
To get started on your home loan health check and prepare for whatever 2023 throws at you, get in touch.
We’ll look at your financial footing, your mortgage, and the market to scope out suitable loan products and potential savings.
By following these tips, you can take control of your finances and prepare for whatever 2023 brings.
Want to learn more? Talk to our brokers today!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.