Did you find yourself descending into a state of panic leading up to June 30 this year? It’s time to learn from last year’s mistakes and take the time now to get yourself set up so that you don’t find yourself in the same position at the end of the new financial year.
The start of a new financial year might not set your cork popping like New Year’s does. But the financial resolutions you make with a clear head in July are far more likely to create a champagne future. So let’s start moving with some smart money habits.
Tip 1: Invest your tax refund for your (future) self
If there is just one new financial habit you adopt this year, make it this one. consider redirecting your tax refund into a managed investment before you have a change to tough it and work towards transforming your financial destiny from a pumpkin into a crystal carriage. No wand required, just a few minutes to set up an online investment account.
Tip 2: On pay day, pay yourself first – you’re worth it
Ask your employer about setting up a salary sacrifice arrangement for your super. You could find, depending on your salary, you may save on tax. Super is a long-term relationship – the more attention you give it, the greater the potential. Then sit back and let compound interest work its magic.
Tip 3: Will you reach your dreams?
Your retirement dream may be lavish; it may be simply to not worry about money, or you may not have even thought about it, but it doesn’t hurt to see how you’re tracking. The BT Retirement Income Calculator will help you determine how much monthly income you’ll need in retirement, show you the progress you’ve made with your current super savings strategy, and suggest what s may take to reach your goal.
Tip 4: Tool up and save
We all know how important it is to track your spending and prepare a budget. But who’s got the time? With so many time-saving financial apps on the market, it’s worth taking a moment to track down the best tools for the job. Check out TrackMyGOALS and TrackMySPEND, two smart new budgeting appls on the government’s MoneySmart website. Or try Pocketbook, another free budgeting tool. They won’t just save you time – if you stick to the plan, they’ll save you money as well.
Tip 5: Be your own boss
Do you dream about turning your passion into a business and kissing your day job goodbye? If your goal is to create income then it pays to be businesslike from the get-go. Set some goals, create a dedicated work space and write a business plan. A good place to start is the government’s guide, ‘How to Write a Business Plan’. Pin down your target market and use social media to grow your network. Do a course to plug any skill gaps, and download some online accounting software to keep track of your progress. you could begin your search with Quickbooks and Xero. The fruits of your own labour are always sweetest.
Tip 6: Time is money. Your money
The new financial year could also be your motivation for (finally) seeing a financial planner. They can ask the right questions to get a holistic view of your finances, help you wit the tips above – as well as offering you tailored advice to help you set your own financial goals and develop strategies to help you reach them. If you’re interested, get into contact with us today on 1300 850 757.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.