Sorting your finances is a big topic! Now is the second-best time to turn your finances around and take control of your future.
So here are some tips we have to help you get sorting!
1. Set financial goals
There’s no better time than now to take some time out of your day and set those financial goals! Deciding what you want for your financial future is a great process. You can even get your partner or your family involved! It’s super important for you to know what you want individually, but it’s also important to understand what you want for your joint finances.
If you’re in a relationship it’s a really good idea to have a dedicated chat with your partner. Why not go on a money date!
Make those goals achievable
Spending that quality time with those who share your finances isn’t the only bonus! Getting on the same page could mean the difference in setting a measurable goal you know you can achieve. By sharing that goal you’re now accountable.
That discussion you’ve had will also let you define those smaller steps. Now you have your smaller steps you can tick them off as you go and celebrate your progress!
Have SMART Goals
At Rise High we love SMART Goals! Specific, Measurable, Achievable, Realistic, and Time-focused is your best guide when setting your financial goals! It’s likely achieving your goal will require you to change some habits. But this will help you create good habits that you can carry into your brighter financial future.
2. Savings are important!
Whether you want to go on a holiday, buy a car, or even buy a house, saving more is always important! We have some recommendations on how you can shift your spending habits to accelerate your savings.
Pay yourself first!
Debt is a constant in our lives, but you can have good debt! As soon as you get paid, put some money aside. Pay yourself first!
If you’re finding it hard to put savings away it might be because you’re doing the opposite. Spending your money, then putting what’s left in savings will slow down your saving. To sort your finances make the changes that will benefit you in the long and short term!
If you would like to learn more about the difference between good debt and bad debt you can read about it on our blog here!
Your spending habits affect your loan application
When you can finally apply for that loan that helps you achieve your goal there are a few things the lender will look at.
All the good spending habits you’ve had will really help when the lender stress tests your income. Your bank statements can be used to validate your spending and saving habits. The lender will be looking at your income, living expenses, and spending habits. All that saving and budget planning you’ve done in your goal setting will help your borrowing power!
3. Create a passive income
When you sort your finances remember when you retire you want financial security and freedom! You can achieve this by creating a passive income now that will secure your future.
The power of being able to retire on your terms can give you the freedom of choice. It’s never too late to start! So here are a few ways you can get started.
Diversify your income
Your primary source of income is a great start, but if your goal is to save more, you might want to consider diversifying your income. We want you to have other income streams apart from your main source. There are a few common sources which are: property investment (our personal favorite!), shares, and bonds.
Before you choose which is best for you make sure you have all the information you can get. If you’re looking into property investing we can help! Your Rise High mortgage broker can help you through your entire investing journey. Contact us here and check out our upcoming free property seminars!
4. Get a Financial Health Check
Our final tip is one that can actually save you money!
Getting a financial health check on all of your loans could mean massive savings. Put reviewing all your loans on your list when you sort your finances, things like refinancing or consolidating your debts could work wonders to improve your financial position! You could be missing out on great discounts. Contact your lender or your broker to make sure you’re getting the most for your money.
Don’t stop at your loans! Review your insurance policies and providers, like energy and phone providers, could save you more and help you reach those goals sooner.
The most important thing we want you’re to remember is to set goals! Work out what’s important to you and your family. Set those goals, set them measurable, set long-term and short-term goals so that you can create a better lifestyle!
Do you have any questions about sorting your finances? Leave us a comment below or contact us directly here for our experts to answer all your questions on your financial needs!
