It’s that time of year again – time to set some major financial goals and make a plan to crush them! And let’s be honest, who doesn’t want to maximise their personal finances and achieve greater financial stability, security, and freedom? Many of us will finish 2022 and start 2023 with the best of intentions to achieve all of our financial goals, with the greatest of motivation and little doubt that we’ll be successful..
Whether you’re a financial professional or just starting to get your personal finances in order, this article has got you covered. I’ve put together some expert tips and tricks to help you make the most of your money in the new year. Let’s make 2023 the year that you achieve your financial goals, and look back at this time next year at what a successful 12 months you’ve had.
With rental prices rising in Singapore, the cost of airfares soaring, and life, in general, getting more expensive, it’s never been more important to get your finances in order and make the most of your time as an Australian expat in Singapore.
Tip 1: Create a budget and stick to it
Budgeting isn’t always the most exciting thing, but it’s essential for maximising your money and reaching your financial goals. Plus, with the right approach, it can actually be kind of fun! That may be the finance nerd talking there, but it at least doesn’t have to be as mundane as you might expect.
To get started, try tracking your income and expenses for a month or two to get a handle on your spending habits. After the initial shock of how much you spend on certain items, you can identify areas where you can cut back and allocate more money towards your financial goals. And remember, it’s okay to be realistic and flexible with your budget. Life is full of surprises, so don’t be afraid to adjust your budget as needed.
To stay on track, try setting aside cash for specific expenses and avoiding impulse purchases. And if you’re a tech-savvy person, there are plenty of budgeting apps and software that can help you track your spending and stay on track. Personally, I find that the most effective tracking system varies, so test a few options and find what works for you, and don’t be afraid to get creative and have a little fun with your budget!
Tip 2: Cut unnecessary expenses
It’s time to get serious about cutting out those unnecessary expenses! We’re talking about those expenses that don’t align with your financial goals or add value to your life. By getting rid of these expenses, you’ll free up more money to allocate towards your financial goals or save for a rainy day.
To get started, let’s go back to your budget and look for areas where you’re spending money on things that just aren’t essential or bringing you joy. You can also try the “30-day rule,” where you don’t make any non-essential purchases for 30 days, and see how it impacts your budget. This can help you get a better sense of your spending habits and identify areas where you can cut back.
And when it comes to finding areas to cut back, don’t be afraid to get creative. Try negotiating bills and expenses, switching to lower-cost alternatives, and cutting subscriptions or memberships that you don’t use regularly. Reviewing your credit card statements can be a great way to get an overview of some of the subscriptions that you’re paying for that you may have forgotten about. Personally, it was only reviewing my credit card statement that brought to my attention I was still paying for the online AFL subscription to watch the footy after the season had ended (thankfully, not too much time had passed).
Tip 3: Increase your income
It’s time to get serious about boosting your income! Whether you’re looking to get a raise at your current job, negotiate a higher salary when starting a new job, or start a side hustle or freelance work, or have an income generating investment portfolio, there are plenty of ways to increase your income and maximise your income. This could allow you to set aside more money in your emergency fund, or fast-track your success to achieving your financial goals.
But here’s the thing – it’s not just about boosting your income from one source. It’s also important to diversify your income sources to provide a buffer in case one source experiences a downturn or disappears entirely. So why not try starting a side hustle or freelance work, investing in rental properties, or even a portfolio or dividend-paying equities? By finding multiple sources of income, you’ll be on your way to maximising your financial security and stability.
Tip 4: Invest in your financial education
Investing in your financial education is an important step in maximising your money and achieving your financial goals. Financial literacy can help you make informed decisions about how to manage your money and plan for your financial future. There are many resources available for improving your financial knowledge, including online courses, books, blogs, videos, and financial advisors you can speak to.
Some topics to consider learning about include budgeting, saving, investing, and retirement planning. By investing in your financial education, you’ll be better equipped to make smart financial decisions and achieve your financial goals. It’s also a good idea to regularly review and update your financial knowledge to stay current with changes in the financial landscape. By staying informed, you’ll be better equipped to adapt and make the most of your money.
Tip 5: Build your dream team
It’s important to build your team with the right people when it comes to your personal finances, which includes a greater Accountant / Tax Adviser, Solicitor if required, and Financial Planner.
Working with a Financial Planner can be helpful in a number of ways. A Planner can help you create a plan to achieve your financial goals, such as saving for retirement, paying off debt, or building wealth. They can also provide you with guidance on investment strategies and help you make informed decisions about how to manage your money.
There are several ways to find a reputable Financial Planner:
- Ask for referrals from friends, family, or professional contacts who have worked with a Financial Planner.
- Consider working with a Fee-Based Financial Planner, who charges for their services on a flat fee or hourly basis if this suits what you’re looking for. Ensure that they’re transparent in the way that they generate revenue.
- Ask potential Financial Planners about their credentials and experience, and be sure to check their background and any disciplinary history through the relevant regulators.
- Consider meeting with several Financial Planners to find the one that is the best fit for you and your financial needs.
Are you ready to make the most of your money in the new year? It’s time to set some financial goals, get creative with your household financial budget, and trim those excess costs and subscriptions where possible. Want to boost your income? There are plenty of ways to do it. And when in doubt, seek out a qualified Financial Planner to help guide you on your path to financial success.
Don’t leave your cash in the bank collecting dust, particularly with inflation at such high levels – let’s make it work for you! With some planning and dedication, you can achieve all of your money goals and have a financially successful 2023.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
Australian Expatriate Group is a division of Global Financial Consultants in Singapore providing specialist advice to Australians living abroad.
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives, or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.