Financial health check: start 2020 on the right foot

Checking in on your habits should be a priority for everyone.

  • 6 December 2019

    Your priorities and goals will change depending on what’s important to you at different stages of your life, but there are some major things you should make a habit of reviewing each year.

    With a new decade right around the corner, it’s time to take stock of your finances. Maybe you’re on track, or maybe you’ve got some more work to do, but regularly checking in on your habits and setting goals should be a priority for everyone.

    Financial health check - image of person putting money into a piggybank

    Budget

    Is your budget working for you and allowing you to save and spend the way you want to? Wait - have you even set a budget?

    Having at least a loose budget is the foundation of good money management, and can be as simple as making sure you’re spending less than you’re earning. But in 2020, it’s time to get serious about your money and set out a proper budget, allocating funds for different uses, including regular savings.

    Savings

    Speaking of savings, the New Year is a great time to check in on your savings goals and make sure you’re still on track.

    If you find saving a hard habit to form, try setting a 2020 saving goal that you really care about. Whether you’re building up your emergency fund, saving to buy the latest iPhone or putting money away for a holiday, having a set goal in mind can really help keep you motivated.

    Retirement

    One big savings goal you might not have really started thinking about yet, is retirement. It might feel like a long time away, but the sooner you start planning for your future, the more likely you are to be able to enjoy yourself after you stop working.

    Make this the year you finally get around to adding extra contributions to your super, or even start a savings account dedicated to your retirement fund.

    Debt

    Got a guilty credit card debt? One of the best things you can do for your finances in 2020 is to pay down any debt that’s been weighing you down - or at least make a start on it.

    If you don’t know how to begin, it might be worth looking into a balance transfer card or a personal loan to consolidate your debts and help you get a head start on blasting your debt away.

    Home loan

    Not all debt is bad debt - a home loan is one of the best ways to buy your own home. But, bad debt or not, there’s no point paying more than you have to on your mortgage.

    With home loan rates at all-time lows, 2020 is the perfect time to review your home loan and make sure you’re on the best possible deal. Just remember, the interest rate isn’t everything - keep an eye on fees and flexible features that might help you save more as well.

    Insurance

    Finally, it’s worth checking in on your insurance. Car insurance, home and contents insurance and life insurance are three big policies that you might want to consider. 

    As your lifestyle and situation changes, you may need to upgrade your insurance - for example, if you’ve started furnishing an apartment, you may need to take out or bump up your contents insurance.

    If you’ve already got insurance, double check your cover level and make sure it’s still adequate to cover your needs.

     

    Keep in mind

    It might not seem very glamorous or fun, but making it a New Year habit to review your finances and set your goals for the next year can set you on the right path for a lifetime of good money management.

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