2019… bring it on!
With the New Year comes the resolutions: join the gym, eat healthier, learn new skills, the list goes on.
While health and fitness always find their way to the top of the list, financial based resolutions aren’t too far behind. From squirrelling a little away each month for a relaxing holiday to getting a better picture of everyday spending, there’s no shortage of financial goals.
With that in mind, I had a chat with the rest of the Goodments team to find out what their top tips for financial fitness are in 2019. I thought it’d be cool to compile them for you.
Here’s what they had to share:
Tom, Founder and CEO
Tom said that he likes to set realistic goals that are achievable. Setting aside $50 a week and foregoing the daily coffee might not be attainable, but $10 each week could be. Starting small and making it regular is the key.
He also says it’s important to make your money work for you. Think about investing or, if you have repayments, search around for the best rates to avoid paying more than you need to.
Kevin, Software Engineer
Kevin said that using a spreadsheet is a handy way to keep track of expenses. Additionally, expanding the sheet across weeks, months or even years to get a better picture of expenses over time, and into the future, is a great way to manage budgets and savings.
Using a credit card, responsibly, was another of his tips. By using it for every day spending and bills, before paying it in full at the end of each month, you can very quickly accumulate a handful of frequent flyer or rewards points. These can come in handy for saving money down the track. Additionally, this means that you only have a single figure to watch for over spending.
Tracey, Head of Design
Tracey likes the classic idea of bringing lunch and snacks to work. But she did mention that you’d have to pry her morning coffee purchase from her cold dead hands.
It’s amazing how much you actually end up spending on take-out lunches once you add it all up. Let’s say the average daily lunch purchase costs $10, that’s $50 a week or $200 a month. In comparison, preparing a meal for each day of the month is likely to cost under $50. That’s some serious savings.
Babar, Head of Trading Systems
Babar says to stop collecting and start selling. It’s easy for us to stockpile random items around the home. You know, those bits and pieces that sit at the back of the cupboard never to see the light of day. He likes the idea of using websites like eBay to regularly declutter and sell those items for a little extra cash here and there.
He also recommends making an emergency fund that gets tucked away for rainy days. Ideally, this is a separate from your regular savings.
Nhi, Data Scientist
Nhi said a great way to manage spend is to set budgets throughout the year.
When you go shopping, for example, it’s nice to set a budget ahead of time to help avoid overspending or even curb the often dangerous impulse purchases.
She also suggests creating a “Goodments Jar”. Although, in the almost cashless society we currently live in, this may be more virtual than physical. Each time you do something good, like recycling or using a reusable cup instead of a single-use one, add a dollar or 2 into your Goodments Jar. Empty it at the end of the year for a nice little bit of extra spending money.
Jye, Head of Growth
And me, I agree with the team 🎉
Additionally, I recommend keeping a log of all work related expenses throughout the year. The last thing you want to be doing when tax time rolls around is searching through bank transactions and emails for receipts. Your accountant will love this.
I also like to set up multiple online savings accounts attached to my main bank account. It makes it easier to achieve savings goals throughout the year. Something as simple as putting $20 into the “Christmas” savings account each week can really ease financial stress come Christmas time. Another $20 into the “Car” account comes in handy once the registration and insurance is due each year. The same can be replicated for all major financial periods planned for the year.
What do you think?
Do you currently implement any of these throughout the year when managing your finances?