How are your New Year’s Resolutions going? Resolutions are hard to keep but so often, it’s because we put them just out of reach. When it comes to wealth, perfect spending and saving habits are rapidly thrown off course by everyday events. If we just aim to be a bit better, then the compound effect leaves us much better off.

Here’s how you can aim for better finances:

• Know how much money is coming in.
  
  
• Know how much is going out. We like CBA’s online calculator to help you work it all out, or you can use a simple spreadsheet to list your periodic expenses. Be conservative in your assessment. This will help to avoid nasty surprises.
  
  
• Get critical – look at your outgoing spending and consider whether there might be a more cost-effective option.
  
  
• Budget for fun, and for savings. It helps to have a vision for your finances that excites you. Whether it’s a holiday, or a renovation, or an early retirement, an emotional goal will pull you towards it, and you’ll find you’re not pushing your efforts and habits uphill.
  
  
• Make your savings work hard. A simple way is to pay down debt or invest. Remember investment is scalable. You don’t have to have a huge lump sum to make a start. There are many options to explore.
  
  

With a financial health check at the beginning of the year, you’ll soon make progress, and progress is one of the best motivators of all.

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