The new financial year provides an opportunity for a fresh start for your finances. 

Make this the financial year you get on top of yours – for good. 

We have broken it down into six bite-sized, manageable steps to tackle during the next six months, because real change takes time.

The below is a suggested path to a new financial you, however, you can choose your preferred order and pace.

July: Goal setting – What is it that you want? I mean really want? As with any goal, your financial goals should be SMART – Specific, Measurable, Achievable, Relevant, Timely.

Whether you are wanting to build an emergency fund, get out of debt, or save for a specific goal, write down your goals in detail and then revisit these regularly to remind yourself of what you are working towards.

August: Set your budget – A budget helps you see what is coming in, what is going out and, most importantly, how much you have to allocate towards your goals.

There are plenty of free templates online, so find one that works for you and add in your personal income and expenses.

Go through your last three months’ bank statements to get details of your spending.

September: Set up a savings plan – You can do this by working out how much money you need for a particular savings goal and by when, then breaking it down into regular amounts to be set aside.

For example, if you want to save $2000 for Christmas by December 1, you will need to set aside $154 each week from September 1.

Automate savings by setting up a regular transfer.

October: Super check – It is time to health check your superannuation. 

Make sure your contact details are up-to-date to ensure you are not missing out on important correspondence. 

Do you have a current beneficiary nomination in place? A valid beneficiary nomination will direct your super fund on how you would like your super benefits to be paid, if you were to pass away. 

How much is your super costing future you? There are a whole range of fees that might be funded from your super, including administration, investment and adviser service fees, all of which will have an impact on your retirement savings. 

Do you know how your super is invested? Is it conservative or growth? How well has it performed over the long term? Some important things to consider when choosing an investment option include your life stage, investment horizon and comfort for risk.

November: Insurance review – There are a range of insurances that offer financial security for you and your family, including: life; total and permanent disability; trauma; and income protection. This month, get to know your current insurances and consider whether the types and amounts are suitable for your needs.

December: Estate planning – Estate planning involves documenting what you want to happen in the event you pass away or become incapacitated. It might include wills, powers of attorney, health directives and guardianship nominations.

If you do not have these in place already, it is time to build out your estate plan. If you do, it is time to dig these out for a review.

Congratulations, you made it.

If you would like some extra support on your journey, reach out to a financial adviser today for help with achieving your financial goals.

• The information provided in this article is general in nature only and does not constitute personal financial advice.

The entire July 17, 2024 edition of The Weekly Advertiser is available online. READ IT HERE!