It’s the start of a new financial year and while it might not set your cork popping like New Year’s Eve does, the financial resolutions you make with a clear head in July are far more likely to start your future off with a bang (and hopefully some extra cash in hand too).
It’s easy to put your finances in the back of your mind while keeping up with work and family commitments, but now is the time to learn from last year’s mistakes and understand your future financial targets that little bit more.
It can sometimes feel like you have a mountain to climb just to catch up with the previous tax year, let alone plan for the next one. That’s why it’s crucial to start planning your finances today and avoid the last minute rush in a year’s time.
These changes to get ahead in the new financial year don’t need to be big ones, they can be as small as you like. All small steps in the right direction can lead you to your ultimate financial goal.
To celebrate another financial year and get the ball rolling, follow our tips and hints to maintain that financial strategy all year long:
Get to know your financial position
Make a list of what you earn per week/month/year and what you spend. It’s time to start working out where your money is being invested and where you could save. It could also be a smart move to prepare your tax return lodgement in advance. Maybe it’s time to buy that financial year diary?
Keeping an eye on your super
Your super fund is an important part of your financial plan. It’s imperative that you check that your employer is paying towards your super fund, otherwise you may find yourself short! Compare all your payslips and if you find any inconsistencies, contact your payroll.
Save and invest your way to the top
Save now and thank yourself later; splitting your wages into a savings account and spending account will stop money going towards a more short-term offer. Start saving a couple of hundred dollars every few weeks to go towards a holiday, car, house etc. The more appealing ways to spend your money may only last for a short period of time so start observing where you’re wasting the dollars.
Check out some of the ways Aussies spend their money and where the dollars are being invested in the most.
Aussies spend in total per year
- $11.7 billion on meat and $2.4 billion on seafood
- $14.1 billion on alcohol and $1.1 billion on tea and coffee
- $78.4 billion on car needs and $2.2 billion on public transport
- $8 billion on beauty products and $2 billion on education
- $19 billion on recreational activities and $8.3 billion on medical costs
- $9.5 billion on technology and $5.1 billion on fashion
- $10.5 billion on personal care and $0.78 billion on pet pampering
Aussies spend individually per week
- $20 on bakery products
- $32 on meals in restaurants
- $7 on shoes
- $13 on household appliances
- $12 on mobile phones
- $$9 on child care
- $14 on audio visual equipment
- $9 on books and newspapers
- $52 on holidays
- $11 on animal expenses
- $20 on health practitioners
Say goodbye to debt
It may seem pretty simple but one of the best ways to start a fresh financial year is to make sure you pay off your credit cards each month. Clearing your debt history will help you avoid those costly interest rates. Deal with debt as soon as you can.
Stop the receipt hunting – set up your bank accounts smartly
Instead of rummaging around your house trying to look for a receipt to see where all that money went to, try setting up your bank accounts specifically for saving and spending. Separating your everyday spending will help save valuable time at tax.
Check out the apps
If you’d rather rely on something more useful to sort your budget out and keep that financial plan on track, there are so many useful apps and calculators to help you out. Most are free to use online but spending a couple of dollars on a budget app could save you hundreds down the line!
Track those goals and stay motivated
You have your goals set and your plans in place; now make sure you stick to them! Record your financial objectives for each month and make sure you use the support network of your friends and family to keep you motivated. Remember, the planning stages are just the beginning, it’s the doing and saving that really counts! Get your loved ones involved too to make it a great money-saving year.
It’s the little things that can make the biggest differences so start your financial planning now and get on top of your money goals and resolutions this financial year.