2016 is almost upon us, and at this time of year we take stock of our lives, assessing what is going well, and what we can do better in the year ahead. We make new year’s resolutions to improve things for ourselves, as well as those around us. The most common new year’s resolutions? Get in better shape physically, and get in better shape financially.
So with that in mind let’s look at 5 sure-fire ways to build your wealth in the year ahead.
- Don’t overspend
It sounds simple, but this is one of the best ways to build your wealth. Make a list of all the regular expenses in your life, and order it from most expensive to least expensive. If you can save a few hundred dollars on your car insurance, it will make a bigger impact than saving a few dollars here and there on smaller items, so start at the top and work your way down. There are some things that you simply can’t do without: cost of running your car, clothing, food, for those items – shop around and see if you can get them cheaper elsewhere.
A good example of this is your mobile phone plan – if you spend most of your time at home connected to your Wi-Fi, consider dropping down to a lower plan and saving on your monthly bill, or seeing what is on offer from other providers. For other items that aren’t essential, look at whether you really need them, or can simply cut down on them.
- Earn more
If you can’t cut down your spending, another way to get ahead is to increase your earnings. Consider whether you can make a supplementary income in your free time. Selling items on eBay can be a good way to do this. If you are out shopping and come across an item reduced to clear at an insane price, do a quick search on eBay for completed listings and see if you can turn it into a profit.Big W recently had Gears Of War 3 on Xbox360 reduced to just $3.00 each, they tend to sell online for $10+ so you can easily flip an item like that for an extra $7. It doesn’t sound like much but when you sell 5-10 of them and you’re doing it regularly it can add up to a lot of extra money in your pocket over the course of the year.
- Plan an achievable budget
Create a budget you can stick to for all your weekly spending. Work out your monthly pay, then minus off any essentials such as transport, utilities, housing, medical – and what you’re left with is the amount you can spend for the month.
For some people it helps to draw out this amount in cash so you can easily keep track of how much you are spending – using bank cards can become a bit of a blur. It also helps to have an automatic saving account that you don’t touch. With weekly deductions to help you save and get ahead. Consider banking offers that reward you for depositing your wages with them.
- Set goals to stay motivated
It is very easy to start a new year with a well formulated plan of attack, only to let it drift away like dandelion spores. The best way to stay motivated with your money is to set financial goals, and reward yourself for meeting those targets. Much like being on a diet and being motivated when you look down at the scales and see the results, keep track of your earnings results and set milestones that you want to reach. Think to yourself what is your ultimate goal, is it to buy a car? Save up a deposit for your first home? To be debt free? Or to save for a family holiday that you’ll always remember?Whatever motivates you to stick to your budgets, or to save as much as possible, hang onto it so that you don’t lose track of why you’re saving.
- Invest wisely
If you already find yourself well-off, look at ways to increase your wealth. Many experts believe that the Sydney and Melbourne property markets are slowing down, but it could be worthwhile looking into other areas like Brisbane and Townsville as these are predicted to boom over the next decade. With large injections of funds into the Brisbane infrastructure and affordable CBD housing compared to Sydney, there are good opportunities to be found with not only high rental yields but also strong capital growth. This makes for the best of both worlds as you can use the rental income for your weekly spending, and also bank on long term capital gains that exceed inflation.Also consider shares and speak with a financial adviser to see if investing on the stock market is the right choice for you. Australian companies like QANTAS and Blackmores share prices have increased dramatically over the last 2 years. QANTAS from $1.17 per share in January 2014, up to $4.16 in October 2015, and Blackmores went from $21.00 per share in January 2014, up to $185.20 in November 2015 and still climbing, fuelled by their products’ growing popularity in China and other overseas markets.
Increasing your wealth now will help you to maintain a standard of living you are used to in your twilight years, so be smart with your money and take steps to make 2016 a booming year for you and your family.