Realistically for some people however, climbing the ranks to meet this goal is not in the cards for the time being. Starting a new career, trying to build up a business, or studying for that next opportunity might be in the way of that desired growth. But remember, boosting your income is not the only step you can make towards your overall financial goals. In this article, we share simple yet effective habits that can help you start your new year strong.

Breathe a sigh of relief if you have no liabilities under your name as your finances would be much easier to manage. However, most Aussies would at least have HECS, a credit card or a home loan that demand their attention.

As a general rule for those with multiple debts, prioritise paying off those with the highest interest rates first. That way, you can effectively pay less interest in the long-run when those high interest debts like credit cards are cleared.

In the meantime, if you’re still drowning in a sea of debt, consider speaking to a loan specialist and ask if they can streamline your finances through a debt consolidation. It is the process of combining existing loans, credit cards and other balances into a single, more manageable financial product with lower interest rates – typically a mortgage.

Speaking of a mortgage, a refinance can save you big bucks if you’ve already done a few years of repayments. It is advantageous to maintain the habit of reviewing your home loan rate and asking the question if there is a better deal for you.

Most of us know what it takes to save money – an intentional effort to resist the temptation of online shopping and the latest gadgets. However, it is much easier said than done. Where a lot of people miss the mark is thinking that resisting big ticket items is the only way to be frugal, but in reality, the small purchases matter greatly too.

The average cost of a medium sized cup of coffee in Australia is $5, and if you pass for one everyday like a lot of Australians do to start their work day, then that is $25 spent a week, or over $1000 a year. Reduce that store-bought coffee habit to coffee pods and that is huge savings for the whole year. The same mentality can be applied to all the different entertainment services we subscribe to. The average monthly cost of $10 each from Netflix, Disney+, Amazon Prime are expenses that add up to a tremendous amount.

Of course, not all savings are made from avoiding expenses, but from hunting deals from your purchases. Shop the short dates for products close to expiry as these tend to offer heavily discounted rates. Make the extra effort to see which items are on sale then buy in bulk if able. All these small habits make extraordinary improvements to your personal savings.

Last but not least, maintain a frugal lifestyle by avoiding lifestyle creep. Remember, getting a boost in income does not fully justify an equal increase in spending.

Investing valuable resources today for a future gain can make you feel like you’re going backwards on your goals. But don’t be afraid of investing time and money spent on yourself as they can pay out huge dividends in the future. 

Dedicate time learning new skills that can help you progress your career. Learn a new hobby that can boost your mental well-being. Develop new friendships and expand your network and social circle. The direct gain of these activities to your finances are immeasurable, but can arguably make the most impact in the long-run.

Remember, cultivating good financial habits is an ongoing process. Consistency and adaptability are key as you navigate your unique financial journey.

Any advice provided is general in nature and should be considered in line with your financial situation, needs and objectives.