Sticking to twelve simple financial resolutions in 2012 can potentially save you thousands of dollars each year as well as the opportunity to redefine your financial plans.

And much of this is really just a matter of working with what you already have, by restructuring your existing arrangements so they work more effectively for you.

Too often we’re so entrenched in our day-to-day routine we don’t realise how much each of our habits are collectively costing us – and then we think we’re too busy to take the time out to change things.

However, if you find you’re constantly finding you’re wanting more bang for your buck – you need to step off that daily treadmill for long enough to review the areas that most impact your finances, make long term changes to free up more cash and take up the opportunity to improve your financial plans.

These are my top twelve resolutions for 2012: 

1. Develop a long term financial plan if you haven’t already – or improve upon your existing one
2. Take full advantage of the two recent rate cuts by paying more off your mortgage than you are required to, saving considerable interest over the life of the loan.
3. Speak to your lender. This can allow you to see if there is a more appropriate loan for your circumstances that you can switch to – alternatively, take the time to shop around.
4. Stop complaining about the lack of decent service from any of your service providers and do something about it. Sometimes providers can become complacent when they’ve had your business for a long time – so if you feel like just another number, see what else is available.
5. Address any remaining credit card debt. Review all your credit arrangements, particularly those where you are struggling to pay the interest and consider consolidating the debt into your mortgage if you can. Once this is done – change your credit habits and obtain a debit card to replace your credit card.
6. Draw up a realistic monthly budget for all spending including essential and discretionary. This will allow you to take control of your spending, monitor where all your money goes and where you may be able to make further improvements
7. Combat rising electricity costs by reviewing your habits. Turning appliances off when not in use, reducing use of dryers and updating old non-energy efficient appliances will all contribute to lowering your bills.
8. Review your water use as well. Small-and-often changes such as having shorter showers, washing only when you have a full load and using water-saving devices in the garden will all have a cumulative effect of saving you money over time.
9. Review your phone/internet plans – there are so many cheap bundled plans among phone and internet providers so look around, but ensure you’re always comparing apples with apples.
10. Review all your insurances – shop around among providers each year for all types of insurances including mortgage, health, life, car, house and contents. Premiums do change year on year, even with the same provider, so this exercise should be done annually anyway.
11. Review how you holiday. If you always opt for the same style holiday, consider other options as an alternative, particularly if you can save money by doing so.
12. Review your transport methods. If you have two cars, ask yourself do you still need two cars or would one of you be better off walking or cycling to work. Or can you feasibly catch public transport more often so you’re not paying out for petrol, parking, registration and insurance.

Tags: Budget, Credit Cards, Debt Consolidation, home loan rate, Saving, Spending

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