New Year. New Wealth. 8 Tips to Crush Your Financial Fitness Goals

Financial fitness is like the gym. Still not sold? Let’s think of getting in shape. In January, gyms are packed with ambitious folks speeding toward a healthier version. And unfortunately many of them run out of steam and lose motivation as the year goes on. So here’s some food for thought. If people adopted healthier habits during the year, the aggressive January hustle might not be the right move. Instead they could evaluate their progress and adjust their goals to achieve even better results this year. 

Taking control of your finances starts with taking stock of where you’re sitting. Then you can set goals and install healthy money habits that will nudge you forwards without too much effort. If you imagine 1% improvement each day, that adds up to a lot at the end of the year. Plus once you’ve got a set of healthy habits working, progress is inevitable and that creates more freedom. 

Achieving your financial fitness goals is easier than you think. To give you an advantage in the resolution race, look at these personal wealth-building strategies:

1. Personal Income and Expenses. Money in, money out. It’s natural. So take a moment to review your income and expenses. Categorise your spending and track your monthly performance. In today’s subscription-based world, it’s easy for unnecessary expenses to stack up. Assess what is working for you and remove what isn’t.

As decluttering genius Marie Kondo says “To truly cherish the things that are important to you, you must first discard those that have outlived their purpose”. Channel your best Marie Kondo and look at your spending: if it doesn’t spark serious joy, get rid of it. 

2. Smarter Savings.  Automate your savings and let your brain relax. Let automatic transfers do the heavy lifting for you when it comes to shifting earnings into savings. Set up the right systems and forget about them. Your savings will grow effortlessly. And have you looked at where you’re stashing it? There are a lot of options to choose from, so make sure you’re doing the most with your rainy day fund all the way to your retirement bucket.

3. Goal Setting. If you don’t know where you’re headed, it’s easy to go nowhere fast. Now is the time to get clear on your financial milestones – both short and long term destinations. Then it’s easy to work backwards and determine what healthy financial habits you need to hit those goals and if that works with your current lifestyle preferences. We recommend writing them down and putting them up somewhere you can see them for a daily nudge. 

4. Tax Tidy Up. Robert Kiyosaki, author of Rich Dad Education on Tax Secrets brilliantly shared, “The money you save in taxes can be used to invest and build your wealth. So don’t wait. Take action now and learn how you can reduce your taxes”.

We couldn’t agree more. Don’t pay more than necessary to meet your government obligations so you can keep more of that hard-earned money. Sure doing your taxes is necessary, but setting up tax efficient structures is the key to optimising your taxes. Upgrade from a once-a-year accountant who submits your taxes, to a financial advisor who will help you with smart set-ups that could save serious coin. 

5. Downsize Debt. Financial buzzwords like ‘good debt’ and ‘bad debt’ get thrown around often. It can get confusing as to what’s what. We prefer to ask our clients about their mix of personal debt and investment debt. Borrowing money to make money can be a smart move when done correctly. 

6. Minimise Risk. Life throws you curveballs. Financial fires can pop up without warning, so make sure you’re covered. Review the fine print of your insurance policy and make sure it ticks all the boxes. By planning for the worst, but hoping for the best, your family can be well taken care of in case of an emergency. 

Just like life, insurance changes often. So evaluate your insurance policy at least once a year to ensure you have the best possible cover at the best possible rate.  

7. Update Your Will. Being prepared means having a will and reviewing it to ensure it reflects your current finances and future desires. Be sure to include details of your financial, medical, and lifestyle desires, relevant documentation for all assets, and who you will assign the responsibility to make decisions on your behalf should that arise. 

8. Retirement Runway. Have you ever imagined your retirement? Even if it’s not on the cards any time soon, mapping out your ideal retirement allows you to start planning for that to be your reality. A great place to start is estimating how much income you need to enjoy the retirement lifestyle you desire. Then it’s easy to work backwards and define the monthly habits needed to get there. 

Figuring out your personal finances can be tough. But you don’t have to do it alone. Try getting started in just 5-minutes. Take our Personal Financial Health Check now. It’s FREE and will give you a great place to get started. Check it out here.

Want to get it done faster and easier? We’ve got you covered. It’s like hiring a personal trainer at the gym, but more fun. We promise! The Prime Team has paired up with hundreds of people just like you to help them get their financials on track and move closer to creating the lifestyle they dream about. If you’re ready to level up your personal wealth plan and have total peace of mind you’re on the best path, let’s talk.

Wealth is closer than you think.