6 quick tips to get your finances into shape this year!

Here are my 6 tips to getting your finances into shape for 2013.

Make sure you read them all, as one of these tips could save you, or even make you, thousands:


1. Pay off your Credit Cards 

With exhorbitant interest rates charged on credit cards, this is a priority. A great way to manage paying off the balance is to divide the total amount outstanding by 12 and commit to paying this each month. You will also need to stop using the credit card and switch to a debit card. If its too tempting having the flashy gold, platinum or brightly coloured card calling out to you in your wallet, then 'hide' it in your top draw or even the freezer to avoid purchasing things you can't really afford. I love the freezer idea as you have time to think whether its really an emergency purchase whilst the card thaws out!

2. Make extra repayments on your Mortgage

Commit to paying off an extra $50 or $100 (or whatever amount you can manage) a week off your mortgage. This will reduce the loan term significantly and also save you thousands in interest. If you can't afford the extra $50 or $100 than with the recent decreases in interest rates, make sure you maintain the same repayments to reduce your loan term and interest costs.

3. Sort out your Super

Do you have 10 super accounts and possibly thousands in lost super accounts? In Australia, there are approximately 5.8 million lost super accounts worth $18.8 billion. Click here to search the ATO database for your lost super accounts. Compare your super funds to see how the funds are performing and consolidate to save on fees and paperwork. For more information about how to judge a super funds performance and consolidating super accounts, check out ASIC's guide here.

4. Create an additional Income Stream

Its a new year, so now is a great time to pursue a passion, skill or idea and make some additional money. With the unemployment rate creeping up and media announcements about layoffs occurring on a daily basis, having an additional income stream can be a great way to getting your finances in shape. You never know where a hobby might take you. A lot of successful businesses have started off on the kitchen table, in the garage or home office as a "side project".

5. Invest in your Education

Research shows that over their lifetime, Uni Graduates are likely to earn $1 million more than people who didn't finish high school. Increase your level of employment or earning capacity by studying. It is never too late to start! If cost is a factor, than see if your employer can subsidise any of this, check what government grants are available, or if it relates to your existing employment you could possibly claim the education costs as tax deductions. Click here for more information about the Skills for All South Australians government initiative which provides free courses for eligible people.

6. Lodge outstanding Tax Returns  

I saw many clients last year that had put off lodging their tax returns for quite a few years. Most of them ended up with substantial tax refunds. If you think you may owe the tax office money, have lost paperwork, or just want the maximum refund, then see a quality and affordable accountant to get the maximum refund possible. Why not use your tax refund to pay off a credit card or some of your mortgage too!