Get 2019 off to a super start

The New Year is a great time to take stock of your life and make some changes for the better. One excellent resolution is to take control of your finances. But how do you get started?

Making a resolution to get your financial situation in order is easier said than done. While it’s great to say you want to make an effort to understand your finances, how can you turn that into meaningful action? We’ve put together some tips to help you make a realistic plan and stick to it.

Resolutions, like most goals, are best when they are specific. The ASIC MoneySmart website recommends you set a savings target so you know where to aim. Work out what financial goals you want to achieve, then break them down into realistic steps to lead you there. Think about your short-term goals, as well as long-term goals. When setting your goals, make sure you consider your current financial position by taking into account your income, debts, savings, insurance, investments and super.¹

Understand where your money goes

A great place to start is to create a budget and track your spending. A budget will help you understand the money going in and out of your household. It will help you discover whether you are spending more or less than you can afford.¹ Then, by adjusting your spending you can start putting more money towards what matters to you, whether it’s saving for a rainy day, to buy a home or to add to your super.

Handy online tools and apps

You can use a budget planning tool, like the one on the MoneySmart website² to work out where your money is going. It will help you list and calculate all the money that’s coming in, and going out of your accounts. There are also some handy apps you can use to track your spending, such as TrackMySPEND, Pocketbook or Wally.³ These can be useful as they let you record your spending as you go, so you can keep an accurate record of all the little things you spend your money on, from your morning coffee to your weekly grocery shop.³

Set a savings goal

Whether you set an ambitious savings target like 15% of your income, or a more modest target of $100 or $200 a month, having a specific number is helpful. Even small amounts you save can really add up. Take a look at the small changes, big savings calculator on the ESSSuper website, that shows how saving the equivalent of a cup of coffee a day can add up to more than $59,000 in savings over time.⁴A good way to achieve your goal is to set up an automatic transfer of the amount to be saved each month to separate savings account. Then challenge yourself to live off the amount that’s left.⁵

Where can you cut back?

Of course you may need to change a few things if you are to reach your goal. Take a look at your spending habits. Is there anywhere you can cut back? Some costs are ‘needs’ that you simply can’t do without, but maybe there are some ‘wants’ that you could trim back on. Take the time to review your gas and electricity providers to see if you can get a better deal. Check out the Victorian Government’s Energy Compare website that offers a $50 incentive to compare energy providers.⁶

Think about reducing any debts you may have. Try to break down what you owe into manageable chunks, then prioritise what to pay off first.¹ Remember, not all debts are equal.⁷ A credit card is most likely the debt with the highest interest rate, so you could start by eliminating that. Or you could pay off your smallest debt first, then move on to the next.¹

Don’t forget about your super

As part of your commitment to get on top of your finances, don’t neglect the role your super plays in your long-term financial security. Make an effort to learn more about your super and how it works. Check out the ESSSuper online salary sacrifice calculator to see if you could save tax while you boost your super. Review whether the beneficiaries you’ve nominated to receive your super if you were to die still reflect your wishes. And take a moment to consider if the insurance you have through super still meets your needs. You’ll find more on these topics in our Super News article on the vital importance of super.

Whatever financial resolution you decide on this year, you can be sure that simply by making the effort to engage with your financial situation, you’ll be taking a positive step towards securing your financial well-being.

1. New Year’s Resolutions: Set and achieve your money goals, MoneySmart
2. Budget Planner, Money Smart
3. Everything you need to know about how to budget, by Emily Berry, My Money
4. ESSSuper Calculators
5. 8 Financial New Year's Resolutions For 2018, Shannon McLay, Forbes
6. Victorian Energy Compare
7. Financial Resolutions for the New Year, Joshua Kennon, The Balance

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available on our website or by calling 1300 650 161.

Get 2019 off to a super start

The New Year is a great time to take stock of your life and make some changes for the better. One excellent resolution is to take control of your finances. But how do you get started?

Understand where your money goes

Handy online tools and apps

Set a savings goal

Where can you cut back?

Don’t forget about your super

Have you registered for Members Online?

2019 Seminar Program

Multiple super funds?

Thinking of retiring?

Do something super for your spouse.

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