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3 Money Mantras To Have In 2017

We’re now in the New Year and some people are understandably worried. With all the New Year’s resolutions being made, there is the familiar dread of actually having to follow through with them.

Yep, that means actually doing something.

If you know you’ll struggle (which we all will, come on), then having a mantra might help to remind you of your financial goals for the year.

Mantras might not be your thing, but there is something to be said about repetition and positive reinforcement.

If you’re still not sure what you want to achieve in 2017, here are 3 money mantras that everyone should consider:

1. I will control my credit debt

Getting out of debt is one of the most common money goals, which makes sense – debt is extremely easy to get into but hard to get out of.

To give you a better idea of why it’s so easy to get caught out – say you have $5000 owing on your credit card with a 16% per annum interest rate. If you only pay off the minimum repayment each month, it could take you up to 26 years to pay the entire amount!

That’s why it’s so important to make more than the minimum repayments (when your loan policy allows it). Any time you have extra money coming in (hello Christmas cash presents!) or even an end of year bonus, put it towards your credit debt.

If you do need to borrow money, it’s a good idea to avoid short term or “pay-day” loans. These loans are faster to process but a lot harder to pay off. They can have establishment fees of up to 20% of the loan amount and large account-keeping charges (just another type of interest) . It all starts to add up and eventually you may find yourself paying a lot more than you can afford.

2. I will save more

This isn’t just a mantra, it’s what a lot of people tell themselves Every Single Day. But just like getting out of credit debt, saving money can be difficult.

It takes more than willpower, some people need a plan to be able to see where they can make extra savings. This is why budgets are so important.

Yes I know, I go on and on about budgets – well, it should be damn obvious why by now and if you aren’t picking up what I’m putting down about budgets, then you should probably move on to another blog.

By making a budget plan and sticking to it (or trying to) you will quickly see where your money is going and where you could be cutting back and funnelling that money into your savings instead.

If you need help making a budget, you can download our free guide.

You can also head here for some extra savings tips.

3. I won’t forget about my super

A lot of people forget about their super. It sits there quietly, behind the scenes, slowing topping up, right?

Do you even know how your money is invested?! I’m going to go with a big fat ‘No’ in 99% of cases and even those that think they do I reckon I could pick a few holes in their ‘understanding’ in under 2 minutes.

Also, an alarming amount of people have multiple super funds, this may be because of changing jobs or companies several times. But it’s important not to forget about them. Not only does it spread your super thin, but yearly account keeping fees can end up eating into your funds.

According to APRA, median yearly fees on a super account are about $500. Think about how much that will cost you over a few forgotten years.

To start off the New Year, amalgamate your super accounts into one. Make sure you close any unused or old accounts and follow-up with any outstanding account fees.

Make sure that your funds are also invested appropriately for you and if you don’t know how, talk to someone that can.

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