Getting fit, starting healthy eating habits and getting your personal finances on
track are among the New Year resolutions for many Australians. But, often, as
the months pass by these resolutions are forgotten. However, if you plan to
make a a resolution to improve your finances in the new year, our simple and
practical tips may be just what you need.
1. Start with a budget
Get into the habit of maintaining a household budget. Spending more than you earn can quickly
land you on the rollercoaster of debt, so make a promise to start living within your means. There is
a budget planner calculator at amp.com.au/calculators which can help or we can provide a more
personalised service for you.
2. Separate your 'wants' from your 'needs'
Do you really need the $100 per month pay TV package? Or the latest model car? Knowing what
suits your needs is key to managing your money better. Remember, it’s a trade-off between what
you have today and your long-term wealth.
3. Use credit cards wisely
Interest rates on credit cards are sometimes as high as 20% or more, so it's important to pay off
credit card debt quickly and within the interest-free period. To do this you will need to make more
than the minimum repayments each month. Also consider rolling different credit card debts into
one low-interest bearing loan facility.
4. Have an emergency fund
As a contingency for life's unexpected expenses, it's vital to have an emergency fund or access to
cash through a mortgage redraw facility or offset account. Try to have at least three months’ salary
in savings.