The beginning of a new financial year is upon us and as we mentioned in our last post – we’re big fans of forward planning. Outlining a clear plan and goal setting makes it easier for you to both focus and measure your efforts throughout the year. Best of all – it sets you up for the next end of financial year.
Setting a goal will give you have a clear picture of what you would like to accomplish this year and make it easier to plan the steps to make this a reality.
Goal setting tips for the new financial year:
Set up an income calculator. First of all, determine exactly how much income you have coming in from all sources.
Set your goals. Determine what your long and short term goals are. Do this by picturing yourself in a year’s time – are you debt free, in your new house or on that family holiday? Now figure out exactly how much you will need to save to make this a reality.
Start a budget. It might not be the most fun way to spend your Sunday afternoon, but it is the best way to understand your financial strengths and weaknesses. Record your spending habits for a week and take stock of where you are spending your money. Now create a new budget, keeping in mind what you could be getting cheaper and things you could cut out altogether – like that morning latte. (Tip: save time by using a track spending app like: TrackMyGoals or TrackMySpend).
Organisation tips for the new financial year:
Get organised. Organise a system to keep track of your accounts. Was this end of financial year stressful? Put in place a plan for the year, taking the stress out of next years tax return. (Tip: keep all your receipts in one place, organised by date. In addition, you can also store them online with the ATO’s myDeductions tool).
Be prepared. Create an emergency fund, of money set aside to pay your expenses in the unfortunate event there is an emergency. A rule of thumb is to set aside enough to cover you for 3 months of living expenses.
Sort your super. Make sure your super is consolidated to avoid paying more fees than you have to. Consider salary sacrificing into your super as an option.
Invest in yourself. Consider further education to increase your skill set and chance of a promotion and/or pay rise. Ask your employer if they will support the cost of further education. There’s lots of opportunity to take online or short courses – do your research and invest in your future.
Start seeing a financial planner. They can offer you advice on your individual circumstances, and help to plan and achieve your financial goals.
Organising a budget and your savings options need not be difficult. Most of all, seek the advice of a professional financial advisor who can help you to plan and maximise your savings.