If your resolution for 2011 is to purchase property it’s time to etch your resolution in stone – because New Year resolutions are often a lot easier said than done.
The start of a new year is always a good time to set new goals, particularly financial ones. But as most of us know, many a New Year resolution is destined to fail.
But don’t give up there! It is possible to stick to your New Year resolution and it all starts with the resolution itself.
The first thing you need to do is assess your resolution and determine whether or not it is realistic. Only if your goal is realistic are you going to be able to achieve it.
Kick of 2011 with an assessment of your financial situation. This may include visiting a mortgage broker for a clear idea of your borrowing capacity and just what size deposit you may need to save in order to purchase the property you want.
By knowing your financial situation you’ll be able to set suitable goals – whether that’s buying your property by September or maybe simply saving $20,000 to go towards a deposit. A realistic goal is a good starting point.
Secondly, if you’re determined to make your property goal happen, you need to have a fine-tuned budget in place.
Having a clear idea of your regular expenses means you can plan and keep in control of your money. It also means you can set the appropriate funds aside for bills rather than panicking at the last minute when your $300 electricity bill arrives.
Without a budget in place, you risk managing bills with your credit card and letting your financial position spiral out of control.
Lastly, keep your goal front of mind. Commit to it both in writing, as well as in words to your friends, to ensure you don’t fall of track.
And remember to reward yourself along the way. Celebrating milestones will keep you motivated towards reaching your final destination.