Tuesday, 04 July 2017
Posted by Tom Watson
2017 is already halfway gone, but that doesn’t mean all is lost for your financial outlook for the rest of the year - after all, July 1 marked the beginning of a new financial year and a fresh opportunity to kick start your goals.
If you need just a little bit of extra motivation to re-evaluate your finances sit back and check out these Mozo tips to help you budget, save and put some money back in your pocket!
Concerned about the impact of rising energy prices on your power bill? How about the current rate you’re paying on your car insurance premium? Well don’t be complacent anymore - a new financial year calls for decisive action! If you’re feeling like your current providers aren’t giving you the value for money you deserve don’t be afraid to make the switch.
Example: A recent car insurance mystery shop by Mozo revealed that drivers could be saving up to $1000 on their comprehensive insurance policies just by shopping around. With policies for a 45 year old male in New South Wales ranging from $615 to $1,124, drivers could save a bundle by simply making the switch when it comes time to renew their policy.
Given that we’re halfway through the year now is a great time to reflect on those savings goals you set at the start of 2017 to see if they’re heading in the right direction.
Putting money away for a trip to Europe next year? If you’re money isn’t in a high interest savings account you could be missing out on valuable interest, plus a savings account will give you the flexibility to withdraw your money whenever you like.
How about a longer term goal like saving for a new car or even a house deposit? Seeing as you won’t be touching the cash for a while you might be better off considering a term deposit which could offer a better interest rate than a traditional savings account over a longer period. Just remember that you won’t be able you access that money until maturity.
Mozo’s top ongoing savings accounts:
Unbelievably we’re already into the 7th month of 2017, so that means you probably have a good idea whether your budget is on track… or veering slightly off course. Not to worry though, because it’s never too late to make a few adjustments.
There are plenty of ways to cut your spending and get your budget on track, from ditching one of your less successful New Year's Resolutions (looking at you gym membership) to cutting back the amount you spend on takeaway. But if you’d like a bit of help along the way check out these seven smartphone apps that will supercharge your tracking and saving.
Example: According to the Mozo Vice Calculator a $4 coffee habit each day works out at nearly $1,500 a year! So just giving it a miss twice a week could inject an extra $400 each year back into your budget.
When it comes to debt there’s absolutely no time to waste.
First things first, work out which of your debts have been causing you the most pain this year. There’s no point continuing to pay off your student loan which is growing at the rate of inflation (2.1%) or your car loan (7%) when you’ve got a credit card debt making a hole in your wallet to the tune of 20% interest.
If you’re serious about ditching your credit card debt it could be a good idea to find a 0% balance transfer deal which will allow you to focus on paying off your debt rather just interest payments.
Mozo’s top balance transfer deals:
Trying to save up for a holiday this summer but not quite getting there with your day job? Whether it’s making some additional cash through the booming sharing economy, or finding a more traditional way to save, plenty of Aussies are turning to side jobs to make a bit extra. Just make sure you're maximising any extra money you make by stashing it away in a top rate savings account.
Example: Got a car sitting around for most of the day while you’re at work? Why not put it to work as well by signing up to a car renting platform like Car Next Door where you could potentially earn hundreds of dollars a week renting out your car to people in your neighbourhood. Or check out this article for four other great ways to make some extra cash using your car.