Most of us have the best intentions come the start of a new year but the reality is, those intentions typically fade by February. Whatever your plans are for 2020, it’s a good idea to set your financial goals too. Setting your financial goals down in writing is a big part of their success. To get your finances on track for 2020, here are 5 goals you could consider setting yourself.
1. Get your credit in check
When last did you check your credit report? Your credit report is a comprehensive list of historical data used to determine your credit score. It’s used by lenders to assess your credit-worthiness each time you apply for credit.
If you are considering applying for credit at any time this year, a good first step is to check your credit report for any inconsistencies and immediately address these with the credit reporting bureau. Being aware of any negative data on your credit report will help you resolve any issues so you can get back on track sooner.
You can request a free copy of your credit report from any of the three credit reporting bureaus in New Zealand:
2. Set a budget
Setting a budget is essential in helping you stay on track this year. At any time, you’ll know how much of your income is going to necessities like rent, food, and utilities, how much is going on discretionary spending, and how much you’re saving. By setting a budget you’ll have more control over your other financial goals.
3. Set a savings goal
Decide how much you can realistically save each month and then put that money aside first before you have a chance to spend it. You may be saving for a holiday, a new car, or an emergency fund. Whatever your goals, set it down in writing and then stick to it.
4. Clear your bad debts
An important part of your financial goals this year should be to clear any debt you have; in particular, high interest debt like credit cards and personal loans which could be holding you back financially. Paying off your debt should take priority over your savings goal as the interest charged usually far outweighs that which you’ll earn on your savings.
5. Talk to a mortgage adviser
Investing in property is a highly effective means of growing your wealth. By leveraging your existing property, you can build a cash flow positive investment property portfolio. The best way to get started is to talk to a mortgage adviser who is experienced in the New Zealand property market.
Whatever your property investment strategy, get in touch with the team at Mortgage Express to talk about your options for refinancing your existing property and leveraging your equity to buy an investment property.
Article sourced from : https://www.mortgage-express.co.nz/blog/setting-your-financial-goals-for-2020
