The new financial year is the perfect time to reset or readjust your goals, tidy up your finances and put plans in place to be more financially savvy and efficient for the 2020 financial year. Below we discuss the areas you should consider reviewing, you can use this as a checklist or consider joining our 10-week money bounce back challenge.
Understand how a financial adviser can support you with your need for financial security. Get in touch.
Areas to review around the End of Financial Year
1. Create or review your budget
Creating a budget is the simplest way to get a complete overview of your finances, you will be able to identify where your money is going and what is coming in. Creating a budget can also help clear up uncertainty or fear around money.
If you’ve been financially impacted by the coronavirus, now is a great time to update your budget so you have a clearer plan on what the next few months may look like for you. What category are you spending the most in? Look into further savings you could make such as reducing your home loan while interest rates are at an all-time low.
Or perhaps your living expenses have been reduced and you have the ability to create a better savings strategy.
You can read our simple guide to budgeting here.
We also have a free budget planner you can download here.
Money Brilliant is a great budgeting app that can sync to your accounts so there’s no guesswork involved in your budget. Clients of ours can access a premium account from us for free saving you $10 a month. Contact your adviser for code and additional support.
2. Reprioritise your goals
If a September trip to Spain was the top of your goal list or your vision board is looking like a faraway dream, it may be time to reprioritise your goals now that we have a clearer idea of what the rest of 2020 will look like.
Now you have reviewed your budget and see how much you have available to put into savings you can plan around what you want to do with that money. Although a cancellation of holidays may have been disappointing it does mean you have more time to save for that trip or can afford another goal in the meantime. Perhaps you want to consider investing in some shares, invest in education or put the money you were spending on restaurants and bars towards a house deposit or new investment property. Set some time to think about what is now achievable for you.
3. Review your super
There has been a lot of talk around market performance and super balances since the start of the Coronavirus. Perhaps you’re considering accessing the $10k super benefit if you’ve been financially impacted, you can read the pros and cons of that here. If you haven’t reviewed your super for a while, now may be a good time, especially if you have more time on your hands. Perhaps your super balances have dropped more than you expected, maybe you are not sure if you have lost super accounts over time or you’re unsure if your current super fund is the right one for you. You may find you have insurance built into your super you are unaware of and are not sure what that means for you. Having a financial adviser review your super account will ensure your fund is in line with you and your unique circumstances and that you’re not paying more in fees than you need to.
If you’re approaching retirement and concerned about your super balance, an adviser can help you create a strategy towards achieving your retirement goals and even potentially help you retire sooner than you expected.
You may be interested in our article “how much super do I need for a comfortable retirement”.
4. Structure your taxes for next year
Each year tax time comes around you might be thinking “next year I’m going to be more efficient at managing my taxes” now is a great time to create a system that works for you.
If you have investments an adviser will be able to help you plan ways to reduce your overall taxes, perhaps by creating a trust account or making additional super contributions.
5. Review Insurance Policies
Having insurance is a responsible and necessary part of life, however, you may come to find you are paying for cover you don’t necessarily need, or perhaps, that you are taking an unnecessary risk by not having enough cover By reviewing your insurance policies and those included in your super fund, you may find you could potentially save money or are uninsured in an area where you know you need it. You want to ensure your super is working for you and not against you.
You may be interested in our article “how much insurance cover do I need”
6. Review your loans
Consider reviewing credit cards, personal loans and home loans. We’re currently seeing the lowest interest rates yet which means now is a great time to consider refinancing and locking in a lower rate. You may want to set yourself a goal of repaying your loans off faster. Or perhaps consolidating multiple loans is a good option for you if you’re in a position to do so. If you’re currently paying more than 3% on your home loan, you’re potentially a good candidate to refinance and make significant savings.
7. See a professional
Seeing a financial adviser will ensure you are in the best position possible to reach your goals and dreams, they can help you stay on track with your budget and review each area of your finances to ensure it’s working for you. You will walk away with a clear plan and strategy around your finances and the confidence you are on the right path.
An adviser can help review all the areas mentioned above and talk you through the right investment and retirement strategy for you.
You may be interested in our article “is it worth paying for a financial adviser”.
Join our free 10-week money bounce back challenge.
In our 10-week money bounce challenge, we cover these areas in more detail and give you a challenge of savings $1000 over the 10 weeks. You will find loads of free resources and deeper insights to rebooting your 2020 financial goals.
Your dreams and goals shouldn’t be dwindled by the shaky start we had to 2020, sometimes “it’s not how much we make but how much you keep” that counts the most. By reviewing your finances now, you are allowing yourself to be in a better position for the rest of the year yet to come.
Get in touch with us today if you would like to find out how we can help.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.