The average Australian will spend $1,079 over the holiday season*, leaving many of us suffering with some serious debt.
Whether it was gifts, a holiday, food, alcohol or just good old fashioned entertainment, we’ll all spend more than we should while getting in the festive spirit. With that all said and done, what can you do to kick that ‘debt hangover’?
Personal wealth management experts, Mark Collins and Russell Mann share the top five things all Aussies should do in 2017 to get their finances back on track and get ahead for next Christmas.
1. Pay off your credit card as quickly as possible.
While this might sound obvious, paying off your credit card balance as quickly as you can could save you some serious cash on interest. Cutting back on a few luxury items for a couple of months, and paying off your credit card instead could save you thousands of dollars in 2017.
2. Calculate what you’re actually spending.
While it sounds like a tedious task, working out what you spend your pay check on each cycle can uncover some alarming spending habits you didn’t even know you had. Something as simple as buying your morning coffee and lunch every day could cost you more than $100 per week.
3. Know where you stand.
How many people know exactly how much they have? Across your bank accounts, investments, mortgages, superannuation, loans and debts, how much do you actually have? Apps like Nettshell can help you work out your financial position in a nutshell and calculate where this will take you in the future.
4. Set some goals.
Planning a holiday? Paying off your car loan? Looking to buy a house? Setting yourself a financial goal is a great way to ensure you stay on track with your spending. Apps like Nettshell calculate when you will reach your savings goals based on your current position, and show you how to get there sooner by adjusting your spending habits.
5. Build a budget.
One of the most important tasks you can do for your finances is to build a budget that fits in with your lifestyle. Use your spending analysis to cut out some of those non-essential costs and calculate how much you need to spend each pay cycle. Set aside a chunk of money for groceries, bills and other expenses and put the rest straight towards your savings goal. While it may take a little while to adjust, you’ll find yourself far more aware of what you are spending and will have the freedom to splash out here and there with the money you’ve saved.
*ASIC. 2016. MoneySmart. https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australias-christmas-spending#text
NettShell is available for iPhone, android and smart phones for $4.49 and can be downloaded via the app store from November 2016. https://itunes.apple.com/au/app/nettshell/id1129049036?mt=8
