Financial Tips to Get You Started in the New Year

If you think your money situation could use a little tweaking, take a look at these financial resolutions for the coming year and see how the shoe fits. moneyland.ch wishes you a fantastic new year!

1. Set financial goals

What would you like your financial situation to look like one year from now? What about in ten years? Ask yourself what you would still like to accomplish in your financial life. Making financial decisions is much easier when you have clear goals.

2. Make a budget

Creating a budget will help your goals within the realms of reality. A good budget should list both your income and every possible foreseeable expense. Creating a clear overview of your costs and income will quickly show you whether your goals are actually reachable, or simply wishful thinking.

Be ridiculously honest when listing your expenses. Many people tend to underestimate their personal spending, and are surprised when they make a budget and find out how much money they actually spend on an everyday basis. By keeping a record of how much money you actually spend every month, you will be able to know exactly what your real expenses are at the end of the year. If you do not already track your spending, then becoming your own personal bookkeeper is a sensible New Year’s Eve resolution.

The moneyland.ch budgeting template makes it easy to create a personal budget.

3. Create an emergency fund

Falls Sie noch keinen Notgroschen haben, ist die Einrichtung eines solchen ein guter Vorsatz fürs neue Jahr. Nützliche Tipps finden Sie im Notgroschen-Ratgeber von moneyland.ch.

If you do not already have an emergency fund, then creating one is a good goal for the new year. You can find useful tips in the moneyland.ch guide to emergency funds in Switzerland.

4. Pay off debts

If you have debts, it usually makes financial sense to pay these off as quickly as possible. That is especially true for expensive credit card loans and personal loans which weigh down your budget with high interest charges. You have the right to repay Swiss personal loans in full at any time, and if you are able, doing this is a good move. If you cannot afford to pay off your debts in full, then refinancing them with a cheaper loan can make sense in some cases. If you are not sure where to start, take a look at these simple tips for becoming debt-free.

5. Streamline your spending

Cutting down on spending is normally a lot easier than boosting your income. It is totally worth taking the time to thoroughly analyze your expenses to see which costs you can reduce, and which ones could be done away with altogether. Ask yourself which things actually make a real difference in your life, and which ones simply hold you back from reaching your financial goals.

Spontaneous impulse spending generally falls into the category of expenses which you should eliminate altogether. There are simple ways to avoid impulse spending, such as leaving your credit cards at home and carrying only the money which you have budgeted for the day’s expenses in cash.

Additionally, you may be able to greatly reduce your spending on regular, ongoing costs for basic services by migrating to cheaper service providers. The moneyland.ch comparisons make it easy to find the best offers for private accounts, savings accounts, bank packages, credit cards, prepaid cards, mobile plans, home Internet, and TV plans.

6. Optimize your saving

If you manage to streamline your spending, you will likely have some money left over at the end of each month. No matter what amount you can afford to save after covering expenses, make sure to put those savings aside every month.

Keeping your savings in a savings account is preferrable to keeping them in a private account because you earn more interest. Comparing savings accounts is important because some pay much more interest than others. Make it a point not to touch the money in your savings account until you reach your financial goals.

7. Start using the pillar 3a

Pillar 3a retirement savings accounts often pay slightly more interest than regular savings accounts. You can also you pillar 3a retirement funds to invest. Regardless of which you decide to use, any money which you save in the pillar 3a can be deducted from your taxable income, which saves you money on taxes. The catch is that your money is locked up in the pillar 3a until you either reach retirement age, or qualify for early withdrawals from the pillar 3a (to buy a home, for example). If your financial goals are long-term, investing your pillar 3a savings generally makes more sense than using a pillar 3a savings account.

8. Get familiar with tax deductions

Many people give away money every year by paying unnecessary income taxes. Take a moment to review the moneyland.ch guide to basic tax deductions to find out whether you fall into that category.

9. Get rid of unnecessary insurance

In Switzerland, you can find an insurance for almost every possible hazard, no matter how remote the risk. Many of these insurances simply are superfluous, unnecessary, or simply too expensive. Make it a New Year’s Eve resolution to review all your insurances and yourself which ones you really need. Keep an especially sharp eye out for overlapping insurance. Once you have decided which insurances are absolutely necessary, take time to compare the premiums and coverage of all available offers to find the best deal.

10. Learn to speak finance

Are you not sure how things like compounding interest, mortgages, and effective interest rates work? When it comes to finances, ignorance is not bliss. Improving your knowledge of the most important aspects of finance can help to improve your financial wellbeing. Free and unbiased sources of information like moneyland.ch can help you navigate the everyday financial jungle and make educated decisions.

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