With 2023-24 behind us, it’s time to set some goals and make sure your money is still working for you. Here are five ways to do so.
The new financial year has landed, bringing fresh opportunities to simplify your money situation and shore up your future.
While money planning can be done all year round, the start of the financial year is often a good time to check in because there are usually a few changes that begin on July 1, such as increased premiums and, this year, major tax changes.
Here are five simple things you can do to try to set yourself up for 2024-25.
Take charge of your tax
Most Australians are set to pay a bit less tax in the new financial year, which is likely to be welcome news to many, given the rising cost of living (you can estimate your tax cut here). Once you’ve worked out how much extra will end up in your bank account, it could be worth creating a plan for the additional dollars. For example, some may allot a bit more to their weekly grocery budget, while others may wish to put it aside for bills or savings.
Between July and October, millions of Australians will file their tax returns. If you’re set to get a refund, consider working out a plan now on how to spend, save or invest the windfall.
Finally, tax season is usually easier if you’re well prepared. Consider setting up tools now – such as a receipt filing system and work spending spreadsheets – to make next year’s tax time straightforward.
Review your super
Periodic super check-ins are important to make sure you’re on track for retirement. Consider looking at whether your level of risk is right for your goals; for example, are you invested conservatively or in a high-growth option? Check whether you have the appropriate level of insurance and that you’re not overpaying on fees. It’s also worth checking you’re not in multiple funds, as this can erode your retirement savings.
To compare your super fund with others on performance and fees, you can use the government’s YourSuper comparison tool.
Check on insurance
If your circumstances have changed in the past 12 months, it could be worth revisiting your insurance. For example, if you’ve recently been married, had a child or become separated, your health insurance policy may not be right for your situation anymore.
Given the high cost of living, it’s also worth taking a look to see what your insurers’ competitors are charging.
Set new goals
With less than six months till Christmas and the summer holidays, the start of the financial year is a great time to set savings or debt-reduction goals.
Common goals include reducing spending, saving for a holiday or big-ticket item, cutting out credit-card debt, building an emergency fund and paying off a chunk of the home loan.
Look at your accounts
If you’re in saving mode, now’s a great time to check whether you’re earning interest on your extra cash, given interest rates have risen several times in the past two years.
Meanwhile, if you’re paying off a home loan, it could be worth revisiting whether you can use additional features, such as an offset account, to bring down your interest. Keep in mind, this won’t be the right approach for all borrowers, so look at your own circumstances and needs.
Even if you’ve got just a couple of hours to spare, a few simple steps could set you up for a bumper 2024-25. Happy New Year.