The new financial year is not far away. So just like the start of a new calendar year, it’s time to start looking at your resolutions.
If your goal is to be better off financially in the new financial year, now is the time to get organised, write a checklist, tick items off and stick with it!
But don’t wait until July to start. Kick it off now with these practical tips:
1. Reduce your debt
- Get rid of extra credit cards and opt for a single card with a lower interest rate and less fees. See Canstar for a comparison of credit cards on the market.
- Combine all your debts into a home loan at a lower interest rate to help you better manage your money. Watch our video on paying off your debts to find out how you could become debt-free.
- Use one-off lump sum payments, such as a bonus or tax refund, to pay off your home loan sooner.
2. Take control of your finances
- We’re all time poor, but if you don’t get the best rates you could become genuinely poor. Go to comparison sites, such as comparethemarket.com.au for your health, car, home, travel insurance and energy bills and Canstar to see how your interest rates and financial products stack up.
- Get serious about managing your budget. If you don’t already have one, it's a good time to start one. Use our budget calculator to find out how much you could put aside each pay day.
3. Get your super sorted
- Don’t forget to find your lost super to give your super savings an extra boost.
- Put all your super accounts into one account to avoid paying multiple fees. It’s easy, find out how to consolidate your super now1
- Start making before-tax salary sacrifice contributions to build up your account balance. Check your superannuation contributions caps to find out how much you can contribute before the end of the financial year.
- If you make after-tax contributions to your super, check if you’re eligible for any co-contribution from the government. Or find out if you can top up your spouse’s super to be eligible for a tax offset.
4. Develop better money habits
- Curb any costly bad habits that can drain your finances, such as paying for things that you can do yourself.
- Build some good habits, such as paying bills on time or setting up direct debits to avoid late charges.
- Develop a savings habit─auto deposit an amount each payday into a separate bank account. Try our savings calculator to find out how much you could put towards a new car, a holiday or a renovation.
5. Reduce unnecessary expenses
- Review any memberships, such as the gym or clubs that you don’t use regularly to reduce your outgoings.
- Cut back on waste and keep your grocery bill in check by only buying what you need. Or buy items in bulk and share the cost with family, friends or neighbours.
6. Protect your income and lifestyle
- Learn about how to invest to grow your personal wealth. Watch our video to find out all you need to know about investing.
- Get your insurance sorted to make sure you have everything covered and protect what’s important to you.
What else do you need to think about?
Working on your finances can be a bit daunting at any time, not just when the new financial year is drawing close.
So if you’d like help with working out your financial goals, you might want to consider getting professional advice. You can find an adviser in your local area or call us on 131 267 so we can put you in touch with someone who can help.
1 Be aware that features from one super account do not automatically transfer to your chosen super fund. And there may be exit or withdrawal fees.
Nearly everyone can claim tax deductions at tax time. Are you getting everything you're entitled too?