So, how do you plan to make the most of your money in 2011? The Herald Sun ran an interesting article this week about financial resolutions, divided up into some resolutions that each generation might want to make. For me as a generation X-er, they couldn’t have been more right, pinpointing many in my generation as people who’ve recently upgraded from a unit or smaller home to a larger suburban family home – with a matching bigger mortgage. Getting ahead of such a mortgage (or sometimes even just keeping up with it) can be hard when you have young kids and as in my case, only work part-time now. So trying to set some goals on how to get a little ahead with the mortgage is a good suggestion for a 2011 goal.
Other financial resolutions they suggested were, for the younger generation Y, getting into the mortgage market for the first time – as long as you’ve dealt reasonably well with your credit card debt, perhaps your university HECS or HELP debt, and have a written budget so you know how much you’ll be able to afford to pay each month towards a mortgage. Only then can you go shopping! (for a house, I mean!).
For those from the baby boomer generation – who I used to imagine had largely paid off their mortgages, but after writing last week about how many Australians will be paying their mortgage into retirement I’m not so sure – keeping an eye on investments and superannuation should also be part of the 2011 plan.
In fact, knowing at least a little about what’s happening with your superannuation is probably something every generation needs to do – we’re not too bad at knowing about our mortgage repayments, but when it comes to knowing what we’re paying into super funds – and whether this will be enough, especially if we’ll still have mortgage repayments to make when we’re retired – is something we should also consider.