Time to read : 4 Minutes
Five Regular Aussies Share Their Financial Resolutions For The Year Ahead
This holiday season is a bittersweet one. While it’s wonderful to come together with friends and family, money is front-of-mind for many of us. With the cost of living getting out of control and the RBA gifting us a lump of coal for Christmas, many Aussies are reflecting on how they can better manage their money in 2023.
Whether you’re worried about making mortgage repayments or simply want to get on top of your savings habits in the new year, here’s how good financial resolutions can help.
Many New Year’s resolutions are generic and easy to forget about after just a few weeks. A financial resolution should be a commitment to staying the course for the year ahead.
The reason why so many resolutions fail is because they aren’t realistic. Be honest with yourself and your situation – otherwise what’s the point?
If you aren’t sure where to begin with your resolutions, start small: something simple like creating an emergency savings fund and adding to it every month is very achievable.
Stress can be the ultimate downfall. With financial and mental wellness closely linked, it pays to make better decisions with your money.
Putting your feelings into concrete strategies
Especially when it feels like there’s no light at the end of the tunnel, it’s easy to get overwhelmed about money problems. But transforming those scary thoughts into positive plans for the future can help you compartmentalise everything that’s going on – so you can focus on what’s really important.
Here’s how to create a financial resolution for 2023:
💡Be realistic: no matter how much you’d like your New Year’s resolution to be “Buy a Lamborghini”, it’s probably not in the cards. Instead, do a lifestyle audit and figure out what is and isn’t possible for next year.
🧮 Get those numbers down on paper: pie-in-the-sky figures won’t help you reach your financial goals. Instead, use a free online savings calculator to determine how much you’ll be able to actually save every week without putting yourself into debt.
👩🏿❤️👨🏿 Pair up with an accountability buddy: it’s doubtful you are the only one in your friend or family circle who wants to get on top of their finances in 2023. Speak to like-minded people and commit to staying accountable with each other. That means sharing your wins as well as the inevitable slip-ups.
Trust the process: it’s not a sexy topic, but budgeting does work – even the experts agree! As long as you stick to the rules you set for yourself, you’ll come out the other side a more financial literate individual with a whole lot more savings than you started with.
My financial resolution is…
Sometimes getting inspiration from the masses can help put your own circumstances into a clearer perspective. We spoke to a handful of regular Aussies about their financial resolutions for 2023 and beyond.
Ashleigh, 36, professional services: “Pay less interest on my home loan. I already have a redraw facility but been slack about putting my extra savings into it. Now that interest rates are much higher, I wish I’d been using it sooner.”
Ryan, 34, sole trader: “I really want to get my foot on the property ladder. As someone in their 30s who’s been renting my whole adult life, I’m hoping the market is going to keep decreasing little by little bit so I can buy a home for a decent price.”
Jennifer, 61, retired: “I would like to pay more attention to my outgoings. I cannot tell you the number of subscriptions I pay for right now. In the past, when I’ve looked at my bank account, sometimes I don’t even know where a payment has gone to. So I think next year I am going to take a weekend to go through my statements and start to reduce the amount of money I am spending on services I don’t really use, or at least need.”
Hamish, 22, retail assistant: “Get a pay rise! Just paying for things at the moment has gotten crazy, and it’s going to really affect me if I can’t start earning more. It’s a worker’s market out there though. If I find another gig that pays more for the same benefits, I’ll jump ship.”
Four inspiring financial goals
Sometimes the smallest lifestyle change can snowball into big benefits – especially when you stick with them over a month, a year, a decade or more. So to kick-start your 2023 with financial confidence, here are five very achievable goals for you to aim for:
🏦 Make 2023 the year you create an emergency savings fund. If you already have one, see if you can deposit even more than you did last year.
💰If you have multiple debts, aim to reduce the number of debts by the end of the year. The easiest way to do that is to pay down your smallest debt first, or consider consolidating them all into a single debt.
☎️ Don’t be afraid to speak to an expert like a financial advisor. Consider it an investment in your future – with plenty of advice and active tips you can take away for the year ahead.
🪦Get your will organised. No one wants to think about their death, but if the worst were to happen you wouldn’t want to leave your loved ones to pick up the pieces. This is also a good time to sort out your life insurance.
The bottom line
Did you know that your financial health is closely linked to your mental health?
No one wants to live with the stress that money struggles can bring, so do yourself a favour this New Year’s and set yourself some attainable resolutions that will help change your financial life for the better.
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