This article is brought to you by ME.
When industry super fund-owned bank ME asked Australians about their financial resolutions for 2020, five key goals stood out.
2020 isn’t just a new year, it’s the start of a new decade, and what better time to set some fresh financial goals? Here are the top five money resolutions for Australians in 2020, plus tips to beat the barriers that could stop you turning these goals into reality.
- Save for a big-ticket buy
Australians’ number one money goal for 2020, nominated by 43%, is saving for a big-ticket item like a holiday or car. However, the main stumbling block facing one in two Australians is high living costs. Review your household expenses to see whether you could get a better deal and examine everything, from your phone plan and insurance cover to your energy provider. Every dollar saved takes you closer to your goal.
- Build rainy day savings
Two out of five (42%) of us want to grow emergency savings this year. However, 21% say they lack financial discipline. Here’s a simple hack – simply put your savings on auto-pilot by setting up a regular transfer of funds out of your everyday account into a separate savings account.
- Save to buy a home
One in five Australians want to buy a home this year and record low interest rates are definitely a sweetener. The hurdle for one in two (52%) people, however, is that their income is too low. That makes it worth speaking to your boss about a pay rise – a ME study found only 12% of workers have taken this approach, but of the ones that do, 75% scored a fatter pay check. Look into joining your industry union too. A report by the Reserve Bank notes that today’s unions are “just as effective in extracting larger wage increases from firms in wage negotiations as they were in the past”.
- Cut spending on expensive habits
One in five of us want to kick costly habits in 2020. Regardless of whether you’re forking out for cigarettes, regular takeaways or impulse clothes purchases, there is a way to stem the tide. Give the habit a miss for just a day, a week or a whole month, and tuck what you’d normally spend into a savings account. It can be quite an eye-opener as to the real cost of habits, and it could be the incentive you need to quit for good.
- Keep a lid on debt
ME found 19% of Australians want to get their debt under control this year. However, 13% say we’re held back by a lack of financial knowledge. The good news is that help is at hand. Head to ME’s free online school of money, Ed, to get up to speed fast, and to start getting on top of personal debt.
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This article is brought to you by ME Bank. This information does not take into account your situation and you should consider if these products are appropriate for you. For more information, please visit www.mebank.com.au.
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