Building wealth in the new financial year: three resolutions to transform your finance

The new financial year is here, and it might be a great time to consider refocusing on your financial goals and resolutions.

Who said it just had to be a “new year” resolution anyway?

Just like the personal development goals you may have set back in January, let’s look at some financial development objectives which can significantly impact your life and provide a solid foundation for future success.

Pay off debt and start saving

Setting up a savings fund is always a smart move, whether it’s for a future home deposit, a new car, or building an emergency fund. However, before diving into saving, it’s important to address any outstanding debts and create a plan to reduce them. Begin by tackling smaller debts like credit cards and personal loans. Prioritise making timely payments, decreasing credit utilisation, and managing debt responsibly. By doing so, you can work towards improving your credit score, which opens doors to better loan terms, lower interest rates, and increased financial flexibility.

Once you feel in control of your current debts, it’s time to consider establishing a savings account and setting a regular contribution goal. Aim to set aside a percentage of your wage, such as 10 or 20 per cent, into your savings account. Building a habit of consistent savings will serve as a valuable asset when you apply for a loan or need to demonstrate financial responsibility.

Create a budget plan

One of the most effective ways to gain control over your finances is by creating a comprehensive budget. A budget allows you to track your income, expenses, and savings, providing a clear picture of your financial situation. Take the time to assess your spending habits, identify areas where you can cut back, and allocate funds towards saving and investing. By adhering to a budget, you can avoid unnecessary debt, build an emergency fund, and work towards achieving your long-term financial goals.

Understanding financial literacy

Financial literacy plays a crucial role in making informed decisions about money management. Committing to enhancing your financial knowledge can lead to improved financial well-being and better decision-making. Take advantage of online resources, attend financial seminars, or enrol in personal finance courses to expand your understanding of topics such as investing, retirement planning, and tax optimisation. The more you know, the better equipped you will be to make sound financial choices that align with your goals. First home buyers looking to understand more about the process and the borrowing side of things, be sure to check out our webinar here.

While it may not be a common practice, setting financial resolutions for the new financial year can have a significant impact on your financial well-being. Remember, financial success is a journey that requires commitment and perseverance. By adopting these resolutions, you’ll be on your way to building a solid financial foundation for yourself and your loved ones. Start the new financial year with a fresh mindset!