I’m sure we can agree on the fact that we’re all very much ready to see the back of 2020. It’s been a hell of a year. Yet, despite everything that 2020 has thrown our way, there is one good thing we can take away from it; we’re resilient af. And, so too, are our finances.
Seriously, if the shit show that has been 2020 is the reason that you’ve lost all motivation to sort your financial shit out, then fear not because a whole new year is just around the corner. You and your financial shit are resilient enough to overcome any challenges that you’ve been through in 2020, and the best way to get started on that is to figure out what your 2021 financial resolutions are going to be.
These resolutions don’t have to be big. In fact, sometimes it’s the smaller changes that are the ones that make the biggest difference in the long-run. It isn’t always just about saving a certain amount of money or hitting a particular net worth, which is why this post is going to discuss some of those smaller financial resolutions that are worth aiming for.
Write Down Your Resolution
Before we get started, I just want to make one thing clear: I don’t care what your financial resolution is. You might want to aim for something big like saving a certain amount of money, or increasing your net worth. Or you might want to take small steps towards starting to invest, or you might just want to start tracking your spending. Whatever it is, just make sure you write it down somewhere. Seriously, write it down on a piece of paper and keep it under your pillow, or type it into the notes on your phone. You might even want to post it on your Instagram feed for all your friends and family to see (nothing keeps you more accountable than having everyone be aware of your goal – trust me).
Being able to physically see what it is you want to achieve will motivate you to work harder and smarter to actually make sure you smash whatever financial resolution you set yourself. So write that shit down.
1. Put Your Money Into a High Interest Savings Account
Honestly, if your money isn’t in a high interest savings account yet, what are you even doing?! High interest savings accounts are the easiest and fastest way for you to earn free money and maximise your savings. The higher the interest rate, the more free money you earn (and who the hell doesn’t love free money?!) At the time of writing, the Westpac 3% Life Savings Account is the highest interest rate on the Aussie market for 18-29 year olds, and it’s where I currently keep all of my savings. The rates do change all the time though, so the best way for you to quickly do a comparison for yourself is by searching on the Mozo High Interest Savings Accounts Comparison tool.
If your resolution is to save more money next year, then make this your first priority.
2. Salary Sacrifice Into Your Super
Everyone that knows me knows that I am obsessed with superannuation. Seriously though, why are people not as into it as I am?!?
I think there is a real lack of education around superannuation, and a lot of us don’t even understand why it is so important to regularly contribute to super. Hence why I wrote an entire superannuation series, including my personal fave: What Is Super and Why Should You Even Care?
If you really can’t be fked to read the entire super series though, let me summarise it for you real quick with this graphic I made:
The main takeaway point here is:
The more you put into your super now, the better off you’re going to be when you retire.
I don’t know about you, but I know that when I retire I wanna be a bloody baller. So, I contribute extra money into my super through pre-tax salary contributions every week. Currently, I’m contributing an extra $20 per week into my super, but one of my financial resolutions this year is to increase this to $30 per week. You don’t have to contribute much. Just start with an amount you feel comfortable with, and go from there!
Go read my Why You Should Be Making Extra Super Contributions and How To Start post for all the info on how to get started with salary sacrificing.
3. Start Investing
It’s all well and good for me to preach that your resolution should be to start investing, but honestly, starting to invest can be scary af. The easiest way to start investing in the share market is to let an app do it for you. Spaceship, for example, is an app that invests your money into the broad Australian share market. There is no minimum amount that you have to invest, and there are no fees for the first $5000 worth of investments. It literally takes a few minutes to set this app up, so it’s another easy resolution for you to tick off.
Raiz is another app that takes minutes to download and set up. Raiz charges $2.50 per month to manage your investments, but has additional add-ons such as round-up investments and Raiz Rewards. I invest $40 per fortnight into my Raiz portfolio, as well as any round-ups from purchases I’ve made (e.g. if I buy a coffee for $3.70, Raiz will automatically round that purchase up and invest 30c). For my New Years resolution, I’m planning to increase my regular investment amount to $50 per fortnight.
*If you want to get a free $5 when you sign up to Raiz, sign up here.
4. Get On Top Of Your Tax Deductions
Tax is confusing as hell, and tax deductions are no different. It’s really easy to put off everything tax-related until the end of the financial year, but that can just lead to more stress and headaches later on. One way to avoid this is to get more financially organised and easily track your deductions with the ATO app throughout the year.
The app lets you easily add all types of tax deductions on the go, including any work-related expenses you might have, any kilometres you’ve travelled for work and any donations you’ve made. You can even log your business income.
Getting on top of your tax in the New Year will not only benefit you immensely when tax time rolls around, but it will also make you feel more financially confident throughout the year.
5. Buy Second-Hand More Often
I’ve been pretty obsessed with scouring Facebook marketplace lately for all the best deals I can find, and honestly I’ve been amazed at some of the things I’ve been able to buy for ridiculously cheap prices. Take, for example, our beaut Christmas tree that we scored for $30 (including the lights & decorations)!!
I’ve decided to add this to my resolution list this year because, not only is buying second-hand great for your bank account, it also stops a lot of things from ending up in landfill which is really bloody good for the environment.
6. Get Yourself a Side Hustle
One of the greatest things to come out of 2020 is the insane amount of side hustles I’ve been seeing pop up everywhere. Seriously, lockdown inspired so many of us to start creative endeavors that bring in a bit of extra cash, and I am here for it. Having a second source of income is a really easy way to hit more financial goals because it allows you to do things like pay off debt and hit your savings goals faster. It also gives you protection against losing all of your income the next time a worldwide pandemic decides to hit. So, if you’re aiming to get yourself a side hustle, then commit to making 2021 the year you do it.
There are probably millions of side hustle jobs you can do, but here’s a quick list of just some side hustle ideas that come to my mind:
SIDE HUSTLE IDEAS:
– Rideshare driver
– Dog walker
– Sell your pottery
– Set up an Etsy store
– Sell your artwork
– Teach an instrument
– Delivery driver
– Make candles and sell them
– Complete Airtasker jobs
– Get a weekend job in hospitality
Whatever it is you decide you want your financial resolution to be, make sure you aim high and work your ass off to smash that goal.
Want FREE access to my Stingy Bitch Money Saving Guide?
This simple four step guide will help you develop a money saving plan that you can actually stick to.
By clicking submit, you agree to share your email address with the site owner and Mailchimp to receive marketing, updates, and other emails from the site owner. Use the unsubscribe link in those emails to opt out at any time.
The Stingy Bitch
Based in Sydney, Australia.
Created in 2020.
This site and all of it’s contents are provided for entertainment purposes only and do not constitute personal financial advice. All products that are mentioned are general product advice only, not personal product advice. Not all options are presented and my opinions are subject to change. All content and posts have been prepared as a general summary only and is not intended to be financial advice with respect to any particular matter. This post should not be relied on with respect to any particular matter. If you have questions about any aspect of the content or this site or otherwise require personal financial advice, you ought to seek financial advice. The author disclaims liability to any person who relies on this post.
Do you have questions, comments or feedback for me? I’d love for you to get in touch!
Follow me on Instagram to be the first to know when my latest blog posts are released.