Your 2021 financial bucket list
Nobody immediately turns to their finances when bucket list dreams are on the agenda. It’s usually all scaling mountains and visiting unexplored corners of the globe in between finding true love and scarfing down fine dining feasts.
But the year 2020 left a lot of people cancelling holiday plans and dinners out on the town to reprioritise financial goals.
So, with economic uncertainty lingering in the wake of COVID-19 and savings on the brain in 2021, we’ve pulled together some achievements you might want to add to your financial bucket list this year.
1. Conquer your debt summit
Make 2021 the year you climb out of debt. If you owe cash to numerous creditors, consider combining all those plastic fantastic bills and lingering personal loans into a debt consolidation loan. This simplifies repayments by combining all debts into a single loan which generally comes at a lower overall interest rate.
Or, for those looking to pay back a credit card bill that’s mounted up over the summer, a balance transfer card gives you the opportunity to pay back debt within a longer interest-free period (often between 3 and 30 months). It won’t offer interest-free spending, so see it as a way to repay what you already owe while breaking free from irresponsible spending habits, not as a future budgeting tool.
Once your debts are neatly prepared for repayment, it’s time to turn up the scrupulous odometer. Lay out a budget which assesses your incomings, outgoings and savings potential. Then set a weekly or monthly savings goal and really have a crack at sticking to it.
2. Refinance your home loan and potentially save thousands
If you’re a homeowner we probably don’t need to drum in the fact that a lower interest rate is a good thing when it comes to home loans. It’s just that the process of evaluating your mortgage costs compared to other offers and considering a switch can seem like a mighty task, right?
Well, start small by reading this short article that shows how a better rate could save you tens of thousands of dollars over the life of your loan. If that piques your interest, then head to Mozo’s home loan refinancing page to see how your current loan compares to others on the market.
In your calculations, make sure you assess the costs of switching lenders – like break or discharge fees – and investigate all the features and costs of the new home loan.
3. Switch to green energy
Sometimes sustainability can eat into your budget, but if you do your research, you may not have to prioritise your savings goals over preserving the planet for future generations. The 2020 Mozo Experts Choice Energy Awards revealed some green electricity plans are better value than the average offer.
So, do you due diligence and read up on how much the cheapest green energy plan could save you on your annual bill depending on where you live in Australia.
4. Ensure you’re insured
Insurance is one of those things nobody wants to dwell on. It can feel like a savings drain, but at the end of the day you want to be covered if an emergency strikes.
The decision to take out various modes of life, car and home insurance will entirely depend on your circumstances and life stage. Luckily we’ve got some reading material to help you decide:
- if you need life insurance, and what kind of policy will suit you and your family
- whether comprehensive car insurance or a third party policy best suits your wheels
- when you might need building insurance, contents insurance or a combo of both
5. Make the most of your savings
This final bucket list item takes us to the other side of the interest rate experience. You want your savings account or term deposit rate to be as high as possible, even in these historically low-rate times.
Again, this one comes down to assessing your circumstances and doing a little research.
- If you’re eligible for a high rate youth savers account – apply!
- If you’ve got short term savings goals or are happy bank-hopping, look for a top introductory rate.
- If you’re after long-term term stability, find the best offer on the market.
It may seem futile with rates being what they are but every penny counts. Plus, it’s an achievable step towards ticking off your 2021 financial goals, so get cracking.