With the new year comes a new lease on life. For me, by writing down my personal finance goals and sharing them with you all I hope that this might provide more motivation and encouragement for me to actually see these goals out!
New years resolutions are a great way to keep you honest, keep you motivated and really get ahead financially in the new year. Here are my new year resolutions for my money, debt and overall financial situation.
Have a read and then share with me your goals for 2013.
Goal number 1: Pay off supplementary loan
We took out a smaller supplementary loan to our mortgage in order to consolidate our debts. A few things changed in our lives in 2012 including being made redundant and returning to university studies. This meant that it has taken a few months to re-arrange our finances and work out how to afford everything. My top priority for 2013 is to get rid of this loan. We already cut up all our credit cards so the aim is to get our only debt remaining as our home loan.
How are we going to achieve this? We have reduced our home loan payment to the minimum because we are renting it out and therefore have negative gearing going on. With the rate reduction this week we are going to transfer all the extra money we save on our main loan to the supplementary loan which we are already paying above the minimum repayments. This means we pay less interest and get rid of it faster.
Goal number 2: Start a baby fund
2013 is going to be the year when we start planning to begin our family. Babies bring a lot of extra stress to your lives so I want to have savings fund set aside to relieve any added financial pressure. My aim is to put $100 per week into my high interest online savings with UBank. This means by the end of 2013 I will have $5200 set aside. Any money that is not used from this account I am going to change into an education fund. I want to start planning as soon as kids come along for education costs.
Goal number 3: Increase my super
With returning back to study and earning less my super contributions have reduced dramatically. This will only be compounded when I start having children and cannot work as much. Also my chosen profession of a teacher is not so highly paid so any super earning potential throughout my lifetime will be fairly small. I also have Life, TPD and income protection through my super and I do not want the premium deductions to go beyond any contributions I am making. My plan for 2013 is to start putting extra money into my super and also use this to take advantage of the Government’s co-contribution schemes. Although I am only 27, I believe it is important to start planning for your retirement early on.
Goal number 4: Start saving for renovations
We have a really nice semi-detached 2 bedroom home which I absolutely love. However it does need a bit of work just to make it a bit more comfortable. I am guestimating that the basic things we would like to do will cost between $40-$50K. Whilst we are still considering all the options (like the fact that eventually we will need to buy a larger home), we will still need to do some basic things even if we wanted to sell it. We are yet to figure out whether it would be better to put savings into an account or somehow work out whether to pay this towards our mortgage which we have free redraw facilities on.
Goal number 5: Acquire more shares
I have a small pocket of shares that I acquired through my last job as bonuses and using the Employee Share Scheme that was available to staff. Ideally I would like to grow this from $5000 to $10,000-$15,000. I am not a share market player, all I want to do is have a range of investment options mainly in blue chip companies where the prices are likely to be stable or go up. Again my hopes are to grow this year on year so that I have it as a backup for education for my children.
We would love to hear from some of our readers what their financial goals for 2013 are going to be and maybe we can achieve them together!