How to make 2018 money friendly

As the Christmas decorations get packed away and life for many returns to normal, AMP Capital is encouraging customers to consider their finances when setting their resolutions for 2018.

Instead of making vague promises like “get fit” or “pay down debt” AMP Capital Head of Retail of Retail Business Manuel Damianakis recommends people set more specific resolutions to grow their wealth during the year.

“Consider a resolution to review and contribute more to your superannuation or commit to undergoing a New Year health check of your finances to ensure your investments are meeting your needs,” says Damianakis.

“Check if you’ve got the best rate on your mortgage and you have enough insurance, or resolve to invest some time towards better educating yourself about saving and investing.”

“Above all, setting a clear goal is critical for the success of any resolution and talking about your goal with others can help ensure you will actually follow through on your promise.”

HERE ARE AMP CAPITAL’S TOP FIVE NEW YEAR’S RESOLUTIONS FOR A WEALTHIER 2018

• Set your spending habits early: Take the time to review every dollar you spent in 2017. Most credit card and internet banking sites allow you to download transaction data. Sort through and categorise them into absolute essentials versus discretionary spend. This can be a painful process but is necessary to help you prioritise where you will spend your hard-earned dollars in 2018.
• Talk about your goals. Our experience suggests that people who talk about their goals and resolutions are more likely to achieve them. Share your key resolutions or goals with someone you trust and respect and check in with them regularly throughout the year to let them know how you’re going.
• Take a closer look at your superannuation. Don’t just commit to saving more for a rainy day. Commit to contributing a little extra to your superannuation in 2018 so you have more money come rain, hail or shine in the years to come. Through the power of compound interest, adding extra dollars to your superannuation now, will mean having so much more to fund your lifestyle when you retire. Your future self will thank you for the foresight shown. The New Year is also a good opportunity to review your investment options so that you have the appropriate mix of growth and defensive assets in your portfolio for your stage in life and in line with your goals.
• Invest in yourself and read widely. Financial education is becoming more accessible and investing in yourself, even if it’s just making time to learn more, is one of the best ways to help you achieve your financial goals. There is a lot of valuable information available online (often for free) as well as offline for your benefit. So consider adding a few wealth management websites (such as www.ampcapital.com.au), blogs and books to your holiday reading.
• Don’t leave it too late. If you have big long-term goals that require a lot of money, don’t wait a couple of years to start working towards them. For example, if you would like to retire at a certain age, your resolutions should include determining how much you need to contribute to superannuation and then understanding what investment strategy you should have in place. Seeking the assistance of a financial adviser may be appropriate.

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