This article is brought to you by ME.
The New Year is a chance to turn a new leaf, break old habits and start fresh ones – and setting a few financial resolutions can add wealth and prosperity to your 2018.
Following a few simple rules can help you stick to your resolutions. Firstly, make them achievable, set a clear target and share your goals with friends or family to gain their support throughout the year ahead. If you’re looking for ideas, try one or all of our resolution suggestions to make the most of your money in 2018.
1. Grow some savings
We’d all like to have more money in the bank, and building savings is a lot easier when we set a clear target. It can be more effective for instance to aim to save a set amount such as $50 each week rather than simply pledging to ‘save more’. Next, open a dedicated high-interest savings account to give your savings the benefit of healthy interest returns.
2. Maximise returns on cash
If you have some savings tucked away, review the rates you’re currently earning to be sure you’re getting the best return possible. Some banks are paying competitive rates on term deposits and some require as little as $1,000 to earn the top rate.
3. Reduce card debt
If you’re carrying an outstanding balance on your credit card, it pays to make 2018 the year you get serious about whittling away the debt. Credit cards are one of the most expensive types of credit available with rates topping 20% p.a. on some cards. On the average card balance of around $3,000, that could mean paying annual interest charges of $600 or more. Switching that balance to a low rate card like could see you save in interest in the first year alone, freeing up extra cash for additional repayments.
4. Give your home loan a check up
A home loan is one of the biggest financial commitments we can take on. So it makes sense to review it at the start of each year to check that you’re still getting great value for money.
5. Streamline debt
Juggling multiple debts can be stressful and costly. If you’re struggling to keep track of your debts, make 2018 the year you streamline debt by converting all your individual loans into one loan, ideally at a lower interest rate. Two ways to do this are by taking out a personal loan or using your home loan. It means one set of paperwork, one monthly repayment, and with a low rate you have opportunities to save on overall interest costs.
Members Equity Bank Limited ABN 56 070 887 679.
The products or services being advertised are provided by third parties not REI Super and therefore will not be the responsibility of REI Super. REI Super may invest in these third parties but does not receive any payments or commissions from these organisations as a result of members using the products and services. Members should make their own assessment and seek professional advice as to the suitability of such products or services for their individual needs.
* This information has been issued by Members Equity Bank (ME Bank). This information does not take into account your situation and you should consider if these products are appropriate for you.