8 money tips for a prosperous Year of the Rat.

The New Year celebrations are not over yet. January 25^th will mark the beginning of the Chinese New Year – also known as the “Spring Festival” – the longest and most important celebration for Chinese families across the globe. 2020 is a year of the Rat and it will be a Metal Rat year.

Quick-witted, resourceful, and smart, Rats have rich imaginations and sharp observations, they can take advantage of various opportunities well. In Chinese culture, rats represent working diligently and thriftiness, so people born in a Rat year are thought to be wealthy and prosperous.

Here are 8 money tips for a prosperous Year of the Rat

1. Focus on your money goals
   Create your own good fortune by setting your financial goals and priorities and have a plan in place to achieve them. Your goal could be to reduce your debt or pay off your home faster, increase your savings and build your wealth, or boost your superannuation. ASIC’s MoneySmart website has calculators and tools to help you work out a plan to make it happen.
2. Commit to Budgeting
   The best way to take control of your finances is with a budget. Your budget enables you to direct your money to where it is needed most, so you can stay on top of your bills and put money towards your future goals. Use the free downloadable budget planner to plan where your money is going.
3. Create a financial calendar
   Stay ahead of your expenses by mapping out when big bills are due (e.g. rates, insurance, car rego, etc.) and when direct debits come out. Note when you may have to buy presents for people (e.g. birthdays, Christmas), or when you want to donate to charity.
4. Change up your spending habits
   Small changes to your everyday spending can help your savings grow throughout the year. Try these tips:

• Avoiding using your credit card for a month and only paying with cash
• Cancel unused gym or online streaming memberships
• Buy second-hand when you can to save money on clothes or household furniture
• Instead of expensive gifts, give gifts of time and labour – such as babysitting, gardening, cooking a meal
• Make and bring your lunch at home, rather than buying it.
• Visit moneysmarts simple ways to save money for more tips and ideas.

5. Don’t set and forget – track your progress
   Keep track of your money goals this lunar new year by setting and tracking your spending. Use an app, write it down or keep track through your online banking transaction history.
   The savings goals calculator helps you to work out how long it will take to reach your goal and the steps you can take to put your plan into action.

6. Clean house and clean up your home loan
   Cleaning house is a Lunar New year tradition, and it’s a great opportunity to tidy up your home loan. Check if you’re getting the best deal on your home loan by:

• Asking your lender if they can do a better deal on your interest rate
• Comparing interest rates, fees and features with other lenders
• Working out the costs of switching to another lender, such as exit fees, break fees and start-up fees, to see if it’s worth it.Use moneysmarts mortgage switching calculator to compare the cost of home loans from other lenders.

7. Plan for your future wealth
   It is never too early to start planning for retirement. Whether you are just starting your career, or beginning to think about life after work, our superannuation calculator can show you how much super you’re likely to have when you retire.

8. Become a savvy investor
   Smart investors don’t rely on good luck; they plan, research and understand their investments and how these fit with their financial goals.
   Never invest in something you don’t fully understand and consider getting help from an independent financial adviser. Seek to expand your knowledge through such things as reading investment magazines, following investing experts and the golden rules to invest smarter.