With a new year, comes new year’s resolutions. Was one of your new year’s goals financially driven? If so, you are part of 52% of Australians who have set financial goals. However, only 1 in 8 of us manage to stick to them [source: MoneySmart].
In this blog, we look at building a budget, cementing your money goals and useful tools and strategies to help you stay on track this year.
So where do you begin? One of the most direct ways to stick to your money goals for the new year is to first look at your previous month’s’ spending and saving. Where did your money go? How consistent were your savings? Are there any spending habits that you can review and refine to better meet your goals this year?
Your budget blueprint
The first step to build a robust budget plan is to have clarity on your spending. Anticipating the costs of your essentials such as rent or mortgage repayments, monthly bills such as groceries, insurance, power and other regular payments can help you set realistic goals. Here are some quick steps:
- Map your previous spending: Map out and categorise where your money was spent to spot areas where you can cut back.
- Create a plan: Use our online tools to set a realistic budget and define your monthly savings goal. When receiving your income, separate your savings first and then split the remainder of your budget to your essentials like bills and groceries, rent and discretionary spending.
- Keep daily costs in check: Regularly monitor where your money is going. Using our Mobile App is a simple way to manage daily expenses and stick to your budget. If you have multiple accounts, download Frollo to benefit from having a single view across all your bank accounts.
Laying the foundations of your budget will help you reinforce your goals, allowing you to easily track and manage your finances. These are the building blocks to creating actionable steps for your overall financial strategy.
- Identify priorities: Start by determining what’s most important. Whether it’s saving for a big purchase, reducing debt, or preparing for retirement.
- Set SMART goals: Create goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, saving $10,000 over two years to buy a car by contributing $100 per week. Read more on SMART goals here.
- Try bucketing your savings: Our savings products like the Star Saver Account, can help you allocate funds towards specific targets. Giving you a more targeted view of your various savings goals.
- Spend smarter: Choose budget friendly holiday options, cancel unused subscriptions, plan your weekly meals and shop around for better deals. Small actions add up and can help you save big. That daily coffee expense sure does add up. With the average cup of coffee around $5 that’s at least $100 per month. Are you better buying from a supermarket and making it yourself?
Tip: According to ASIC’s MoneySmart, breaking down goals into smaller steps makes them easier to achieve while reducing stress. Source: ASIC MoneySmart.
Harnessing Technology for Better Money Habits
Accessing extra support in the way of technology is a great option to manage your goals and stay on top of your money activity, helping you reach your saving goals.
- Use banking tools: Our mobile App allows you to set up savings goals to help you stay on track and see your ‘future payments’ to help be prepared for more expensive months. On our website you can find the Monthly Expenses and the Savings Growth calculators to help you plan.
- Automate your savings: Set up recurring transfers into your savings account to grow your savings without the temptation to spend.
- Financial Education: Access our blogs and resources for ongoing practical tips to build better money habits.
Tip: ASIC data shows that using digital tools to track and automate finances is one of the most effective ways to stay on track.
Understanding your financial situation is crucial to making positive changes with your relationship with money and overall trajectory of your financial goals. Irrespective of your overall goal, if it’s to build an emergency fund, to get out of debt or to save for a big milestone, setting goals, sticking to them and building a strategy is key to making sure you realise them.
Start your 2025 financial journey with SCCU today. Visit us online, drop into your local branch, or give us a call to chat with our friendly team.
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Disclaimer: Southern Cross Credit Union Ltd 82 087 650 682 AFSL 241000 Australian Credit Licence 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).