October financial checklist: 5 financial moves to make this month
October is the perfect month to be a boss with your finances. The craziness of the end of year is still at arms length and this provides the perfect opportunity for you to reflect, and importantly pivot if you’ve financially got a little off course.
Here’s 5 things you can do this month that will leave you feeling calmer about your overall financial wellbeing and hopefully also with more dollars in your pocket.
1. Cut one habit this month
Sometimes we spend out of habit and don’t consider the financial (or emotional) cost they have on us. This October, challenge yourself to ditch one small expense you regularly spend money on - think coffee, alcohol or take away. Each time you go to spend money on your vice, transfer that amount into your savings account - it might surprise you how much you’ll save over the month.
2. Up your financial know-how
Whether it’s taking time to learn more about superannuation returns or investing basics, there are a lot of free educational resources available for you to tap into. In addition to educational guides you’ll find here on Mozo, many superfunds run free webinars, and the ASX has free online courses covering all aspects of investing and share trading.
3. Test your rates knowledge
Do you know the interest rate of your mortgage, your credit card, and your savings account? A low interest rate can save you thousands of dollars, while a high one can trap you in a cycle of debt.
There are many cheap home loan deals right now due to bank competition and the difference between a 5.25% and a 6.25% interest rate is staggering. On an owner-occupied 25-year (P&I) $450,000 mortgage, the difference in interest paid is over $81,000#. That's a huge sum of money that could go towards your super, travel, or savings.
# source: Mozo home loan comparison calculator
4. Don’t miss the looming 31 October tax deadline
Gather up all your paperwork and work through your tax return as you want to avoid paying late fees on your taxes.
5. Plan your festive season spending
The holiday season can be a major cause of financial stress. Get ahead of it by creating a budget now. Make a list of everyone you need to buy gifts for, set a spending limit for each, and factor in other costs like travel, holiday parties, and decorations.
Use sales like Prime Big Deal Day (Oct 7-13) and Black Friday (28 Nov-1 Dec) to stretch your dollars further.