The 5 Must Do Moves For 2012
Perhaps you’ve already achieved some of these. Perhaps you haven’t thought on them. For 2012, there are a couple of moves to make to turn your financial fortunes for the better. Here are five suggestions.
Emergency Fund
For some reason, most of us seem to spend our lives on the financial borderline. We might have savings, but generally, they’re savings for something. A car. A house deposit. This year, it’s an essential step to start putting together your emergency fund. While you’re aiming for three to six months worth of income, that amount doesn’t have to be collated immediately. A general suggestion is to set aside a bit of money pronto, solely to be touched in terms of emergency. Once your buffer zone is established, you can start adding to it until you reach the right amount.
Over And Above
Even if it’s five dollars over the base amount, this year it’s essential we all start paying above our minimum repayments on our credit cards. That doesn’t mean you have to get rid of every other saving goal or financial aim, just that you need to start paying back your credit card faster than the suggested rate. Look at it this way; the bank’s ideal customer is someone who never defaults, is always in debt and repays at the minimum rate. A customer for life. Don’t fall for it, start your repayments at a higher rate.
Consolidate
If you’ve had a couple of jobs over the past years, chances are you might have accumulated a couple of super accounts. Don’t waste money in 2012- consolidate the accounts. The fees alone will be a motivation, let alone the money you’re losing in compound interest. Work out which super fund you would like to stay with and contact them for the forms that will help you transfer the money across.
Twenty Percent
It’s not necessarily something you can achieve right away. Perhaps the aim should be to have hit the golden number by the end of 2012, not in the first few months. The golden number, of course, being saving twenty percent of your income. For those of us with debt, some of that number has to go towards our repayments but certainly the remainder should be heading in the direction of our savings.
Account For It
While bank fees are a pain, in 2012, it’s time to set up a savings account where you can actually save money. This means one that isn’t linked to your everyday account, and can’t be accessed through the pesky iPhone (which has seriously hampered my savings accounts over the past year). Set up automatic deductions, and don’t touch it. Look for an account with a high interest rate and rewards for accounts that don’t have withdrawals.
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