How to Achieve Your New Year’s Financial Resolution in 2021
Goodbye 2020 and hello 2021!
As the holiday season draws to a close and a whole new year awaits, it’s time to prepare for some serious 2021 goals.
In fact, if you start off on the right foot, this could be the year to give you the best chance at achieving your New Years financial resolution, regardless of size.
So with that in mind, here are some New Years 2021 financial resolutions and some easy ways to get them out of the park over the next 12 months!
New Years Resolution 1: Be a smarter saver
- Set a savings goal: While you have something specific in mind, like saving for a pet, a new car, or even a home deposit, savings goals can come in all shapes and sizes. You might just want to increase your stash by $ 100 per week – no goal is too small. The important thing is that you have some sort of goal set, as this ultimately makes it easier to measure the success of your savings.
- Adjust your spending habits: Once you have a clear savings goal in your mind, it’s time to take action! This could mean lowering the cost of your weekly groceries, cutting spending online, eating less at restaurants, or even switching your financial products (like a home or car loan) to save on interest and fees. Either way, the rule of thumb is to put the money you save aside and avoid diving into it.
- Find the right product for you: Still using the same account you’ve been using since receiving your very first paycheck? Chances are, you’re not getting the best savings product out there. If you often save money, consider something like a high interest savings account where you are rewarded with bonus interest for regular purchases and deposits. On the other hand, if you have already saved a little, a a term deposit may be the best option for you. You can lock in your money and allow it to accumulate interest without any regular deposit requirement.
New Year’s Resolution 2: Switch to a Better Home Loan
- Evaluate your current loan: Mortgage loan are expensive, so you could save thousands of dollars by opting for a more competitive mortgage option. But before you jump ship, go over your current loan with a fine tooth comb and assess where you need improvement – it could be the interest rate, fees, features, etc. This way, it will be easier to compare the new products you are considering.
- Find a lower rate: Currently on the Mozo database, the average variable rate for home loans is 3.31%, while some of the most competitive rates are below 2.00%. Reducing the interest rate on your mortgage could end up saving you thousands of dollars over the life of the loan. If you’d like to learn more about tracking mortgage rates this month and comparing products, check out our Mortgage interest rates page.
- Weigh the features and costs: Whether it’s a compensatory account you’re looking for or just the option of making additional repayments, be sure to take into account the characteristics of the loan you plan to switch to. Plus, check out any fees you might have to pay over the life of the loan – you might save a bit on those costs as well.
New Year’s Resolution 3: Clear Persistent Personal Debt
- Calculate the amount of your debts: If 2020 left you with some debt, now is the time to get rid of it. The first step to being debt free is figuring out exactly how much you need to repay. It can come from a single product like a credit card or from several other credit cards and personal loans. Work out the numbers and make a plan for how often and for how long to pay off your debt – and stick to it.
- Consider a debt consolidation loan: Do you have several debts? A debt consolidation loan may be exactly what you need. With this product, you can consolidate your debts, such as personal loans, car loans, and credit cards, into one easy repayment at one interest rate. The upside is that you will likely get a lower rate if you consolidate your debt, as things like credit cards can carry high interest rates.
- Enjoy a balance transfer credit card: If you’ve gone wild over the holiday season with your credit card, a balance transfer may be the perfect way to pay off your debt. Most offers come with a 0% or low interest rate for a period of between 3 and 30 months, which means there are plenty of options. The catch is, any expense you make on a balance transfer card won’t be interest free. Ultimately, it’s an easy way to cut spending and pay off debt at the same time.
Need a place to put your savings on New Years 2021 financial resolution? Take a look at these savings account offers below or go to our savings accounts comparison table for more options.
^ See information on Mozo Experts Choice Savings Account Rewards
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