Welcome to this month’s Dominion Finance newsletter, and happy EOFY!
As we approach the end of the financial year, it is a good time to consider our financial position for the next twelve months.
As the high cost of living, we are experiencing still impacts the way we spend and save, it can be beneficial to think about strategies to make the most of what we have.
So here are some tips to consider, as we commence a new financial year.
Budget Wisely: Create a detailed budget that includes all your expenses, including mortgage payments, utilities, groceries, entertainment, and savings. Track your spending to identify areas where you can cut back.
Prioritise Debt Repayment: Make paying off your mortgage a top financial priority. Consider making extra payments when possible, to reduce the principal and save on interest in the long run.
Cut Unnecessary Expenses: Review your expenses regularly and cut out unnecessary costs. This could include subscription services, dining out frequently, or shopping for non-essential items.
Increase Income: Look for opportunities to increase your income, such as taking on a side hustle or freelancing gigs. The additional income can help accelerate debt repayment and provide more room for discretionary spending.
Shop Around for Better Deals: Take proactive steps to find better deals on bills like internet, utilities, and insurance. Don’t hesitate to compare rates from different providers and negotiate for discounts or improved terms.
Save Automatically: Set up automatic transfers to savings or investment accounts each payday. This habit ensures you consistently save for both short-term expenses and long-term goals.
Review and Adjust Regularly: Review your financial plan regularly to ensure it aligns with your current goals and financial situation. Adjust your budget and strategies as needed to stay on track.
Invest in Yourself: Allocate some funds for personal development and wellness. This could include courses that enhance your skills or activities that promote mental and physical well-being, which can ultimately improve your quality of life.
With inflation, conflicts, and uncertainty in the world likely to be with us for some time, and interest rates not expected to drop potentially this year, the cost of living we are experiencing now could be around for a while.
One valuable lesson we’ve all learned from recent experiences is the importance of consistently finding joy in our lives.
Until next time, stay healthy and warm.
At its meeting today, the Board decided to leave the cash rate target unchanged at 4.35 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.25 per cent.
Inflation has fallen substantially since its peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. But the pace of decline has slowed in the most recent data, with inflation still some way above the midpoint of the 2–3 per cent target range. Over the year to April, the monthly CPI indicator rose by 3.6 per cent in headline terms, and by 4.1 per cent excluding volatile items and holiday travel, which was similar to its pace in December 2023.
The information provided in this newsletter is general in nature and does not take into account your personal circumstances, needs, objectives or financial situation. This information does not constitute financial advice. Before acting on any information in this newsletter, you should consider its appropriateness in relation to your personal situation.
