New Financial Habits
For many of us, the New Year can mean enormous credit card debts and infinite store card bills.
But is there a way you can prevent this from happening?
Here at LCU we make sure you’re financially equipped to handle anything. All you have to do is plan ahead!
Keep a budget
Where does all my money go? Very few people can answer this question accurately. Learning how and where you spend your money is the first step in managing your finances. Keeping a written account of these transactions will help you plan more effectively.
To help you budget consider using our budget tips and budget calculator.
Develop a safety buffer
A Christmas or high interest savings account could be the way to go. Not only do you have regular access to your money, you will continue to earn high interest for as long as you keep the funds in the account.
Prepare for unexpected events
You never know what's around the corner! If an unexpected event occurs such as a car accident, unemployment or high medical bills, it is important to know that you have savings to tide you over should the worst occur.
Plan to save
Saving may appear to be difficult and disciplined, but think of the feeling of being able to afford something you’ve wanted for a long time. Aim to save 10% of your monthly income. If you've never been a successful saver before, start off slowly. Set yourself short term goals and work your way up from there!
Tactics to avoid fees and charges
Receiving your statement and discovering you have been charged hundreds of dollars in fees can be frustrating. Try using rediATMs or NAB ATMs instead of bank ATMs. You can have 10 free ATM withdrawals per month. Utilise our BPAY, Internet Banking and Phone Banking options which are quick, easy and most importantly cheap! Look into consolidating your accounts, close the accounts you don’t use, this could save you money.
Avoid ‘charging it to your credit card’
Switch to a Visa Debit card so you never have to pay interest again! Keep your credit card for emergencies and think twice about increasing your limit.
Consider consolidating
It can be daunting to keep up with regular payments for a credit card, loan and store card. Why not consolidate all your debt into one low rate personal loan. This will help you save interest and leave you with just one repayment to worry about.
To find out more about how we can help with any of these tips, contact us.
