6 Tips to start the new financial year right
New financial year, new you! A new financial year is a great time to kick-start your goals, establish good money habits and get on top of your budget. Here are our 6 handy tips to help you set yourself up financially.
1. Prioritise your debt
Work out which of your debts have been causing you the biggest headache and set a plan of action to ditch them. If you’re getting a tax refund this year, consider allocating some of it to pay off your debt – your future self will thank you for it.
2. Set money goals
There’s no point doing anything until you know why you’re doing it! Write down your goals (no matter big or small) for this financial year (and beyond) to make sure your plans can help you hit those milestones. Don’t forget to stick them somewhere you can see – keep your eyes on the prize, as they say!
3. Build an emergency fund
If you don’t already have one, it’s high time you built an emergency fund into your budget. One in three Australians don’t have enough money set aside to cover a $500 emergency and we don’t want you to be one of them. An emergency fund is basically a financial buffer that can keep you afloat in a time of need (think: urgent medical bills, your car breaking down or an unexpected loss of income).
4. Review your plans
Do a little research and check if you can get a better deal on things you pay for regularly like your phone, internet and utilities. You’ll be surprised how much you can save in the long run.
5. Set up monthly Money Reviews
Let’s call them money dates. Regular reviews of your financial position will help you build the momentum necessary to achieve your money goals. It’s important to regularly check your budget against your bank statements, see where you’ve overspent (and why), and to figure out your next steps.
6. Get on top of your taxes early
Do your future self a favor and get organised: set up folders for your receipts, pay slips and donations. It might be a good idea to download the ATO MyDeductions app – it makes it easy to snap photos of hard copy receipts and input your deductions as they happen.
With these 6 simple tips (and a bit of planning and mapping out what and how you want to achieve) you’ll be giving yourself the best possible start to a great financial year!