Crystal Wealth Newsroom
Four tips to get the new financial year off to a good start
When the end-of-financial-year looms, many of us resolve to improve our financial management for the next 12 months. Whether it’s keeping better records or seeking better deals, there’s a whole host of things we commit to – but often it falls by the wayside.
However, making that commitment stick will have significant consequences for your financial health.
“Reviewing your finances and how you’re managing them on an annual basis is a good habit to get into,” says John McIlroy, Executive Director of Crystal Wealth Partners.
“By making a number of small changes you can have a significant impact on your overall financial wellbeing – and over the years that effect can snowball.”
Here are John’s four tips for getting the new financial year off to the best possible start.
- Audit your outgoings
We’ve all got regular outgoings that are automatically deducted from our bank accounts every month. Mortgages, household bills and insurances all add up. But there’s no room for complacency when it comes to regular payments.
“It’s easy to set and forget many of our regular payments,” says John. “And often, if you’re happy with the service you’re getting, you rarely think about changing providers.”
However, it’s worth shopping around once a year to ensure you’re getting the best deal – both in terms of service and the price you’re paying.
“You can make some significant savings,” says John. “For example, if you can reduce outgoings by two hundred dollars a month it begins to add up.”
- Up your super contributions
It’s smart to increase your superannuation contributions if it’s financially possible, and if you’re employed, consider salary sacrifice.
“Salary sacrifice makes it easier to manage from a cash flow perspective,” says John.
Tax deductions can now be claimed for contributions up to $27,500 for the 2021-22 financial year – this figure does include salary sacrifice and compulsory contributions from your employer, however.
Just as it’s wise to keep an eye on your outgoings, it’s important to be on top of the performance of your superannuation over the past five years too. If you aren’t convinced your super is performing as well as it should do, talk to your financial adviser.
- Examine your investments
There are a number of different investment options available today, so review any investments you have to ensure they’re performing satisfactorily and explore ways in which you can maximise them.
Increasingly, people are wanting to ensure their money is invested with businesses that align with their own moral code. Responsible investing has moved on from simply avoiding industries that may not match an investor’s beliefs to scrutinising everything from how businesses treat their staff to its carbon emissions.
“There are many investment options out there,” says John. “If you want to you can ensure your money is being invested the way you want it to be.”
- Review your plans
Just as it’s easy to set and forget bills, it’s easy to set and forget your financial plan. It’s even easier to forget to have one in the first place.
Having a financial plan can help ensure you’re on the right track for retirement, or to achieve whatever it is you want to achieve – for example, buying an investment property or paying off the mortgage.
“Most people don’t plan for their financial future,” says John. “Many people live day-to-day and don’t plan for their retirement.
“By having a financial plan, you can be clear about your financial goals and have clarity on what it will take to get to them.”
If you’d like any help in getting on the financial front foot, get in touch with the team here at Crystal Wealth – we’d be delighted to help.