Thursday, 12 July 2018

6 smart ways to start the new financial year afresh

Much like January 1st, the beginning of a new financial year is a great time to take stock. There’s nothing like having to go through your finances at tax time to help you assess where you’re on track and where you could do better. Gear up for a great year with these simple strategies.

 

1) Set new goals

Research shows that people who set goals are more successful. Set aside some time now to create your goal list for the coming financial year. Whether it’s saving for a home deposit, paying down your debt, repairing your credit score or building up an emergency savings fund, you’re more likely to do it if you have clarity around what you want to achieve.

2) Sort out your super

• Australians simply don’t save enough super. Around 80 per cent of people retire on a part Age Pension or benefits and half of all single people are retiring with total assets worth less than $100,000 . Make it a priority to sort out your super for your future self’s sake:
• Consolidate your super if you have multiple funds
• Make sure the fees you are paying are reasonable and your fund is performing to at least industry average
• Ask your employer about salary sacrificing the maximum you can, or,
• Set up a monthly automatic super deposit if you are self-employed.

 

3) Budget better

Budgeting wisely is the key to getting ahead with your financial goals. Experiment with these clever budgeting hacks and work out how to make your saving simple and automatic – so that it’s easier to stick to.

 

4) Make the most of technology

No matter how financially savvy you think you are or aren’t, there are excellent tech tools available that can help. Try expense trackers to help you budget better or get a hold of your money once and for all with personal finance software.

 

5) Practice money mindfulness

“Conscious spending” is all about figuring out where you really gain pleasure and satisfaction and directing your hard-earned dollars to those things, while ruthlessly cutting back on waste in other areas. Embracing this new mindset can empower you to save more while still splurging on what makes you smile.

 

6) Repair your credit score

Black marks against your credit history can have a major impact on your life. If you’re concerned about what’s in your credit report, resolve to repair your credit score before the year is out, so you can start the next financial year with a clean slate and financial peace of mind.

Want to find out more about your credit rating? Get a free copy of your credit report today.