Transform this financial year into a milestone of fiscal mastery by following our 6-step plan.
The new financial year offers a perfect opportunity for a fresh start with your finances. Imagine transforming this year into the one where you finally master your finances.
We have crafted six bite-sized, manageable steps for you to conquer over six months, understanding that real, lasting change requires time and patience.
Follow our suggested path to becoming a New Financial You, but feel free to adjust the order and pace to suit your preferences.
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, and Timely.
Whether you want 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’re working towards.
August: Set your Budget
A budget helps you see what’s coming in, what’s 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.
Tip – 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.
Example – If you want to save $2,000 for Christmas by 1 December, you’ll need to set aside $154/week from 1 September.
Tip – Automate savings by setting up a regular transfer.
October: Super Check
It’s time to health check your superannuation:
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Contact Details
Make sure your contact details are up to date to ensure you’re not missing out on important correspondence.
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Beneficiary Nomination
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.
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Fees
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.
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Investment
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:
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Life
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Total & Permanent Disability
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Trauma, and
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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 don’t have these in place already, it’s time to build out your Estate Plan.
If you do, it’s time to dig these out for a review.
Congratulations, you made it!
If you’d like some extra support on your journey, reach out to book a time with a financial advisor today for help with achieving your financial needs and get tailored guidance on the things that matter to you.
