HOME > BLOG > Budgeting and Saving > How to give yourself a new financial year check up

So with the New Financial Year underway, start the ball rolling by getting your finances in order so the next 12 months will be a stress-free ride.

What’s the one thing you’d really like to do this year? Go on a big holiday? Get out of debt? Buy a new place? Instead of just day dreaming about it, why not work towards that reality by sorting out your finances. Here are some handy hints for the coming 12 months.

Get all your tax deductions in order

  • Get a clear understanding of everything you are entitled to claim by doing research online through the ATO or asking your accountant ahead of time for information. Once you receive your refund try not to spend it all at once. Consider re-investing a portion of it into your mortgage, shares, term deposits or super so your return ends up making you money in the long run.

Update your budget

  • Is your household budget working for you? Or do trips to the shops usually descend into a grabby spend-fest? Even if your budget’s been working okay it’s still a good idea to review it as there’s a possibility that your expenses and income have changed. Even small changes might save more. If you need motivation seek out a budgeting plan such as trackmyspend.com.au.

Pay off as much credit card debt as possible

  • If you have money owing on a credit card pay off as much as you can in preparation for the new financial year. Particularly if you have multiple cards. You need to learn to live with just one card with a low interest rate, or none at all. Then pay down your one card regularly – but not just the minimum balance. If you need more than one card to survive ask yourself why. If you’ve got numerous cards, cut up the ones with the highest interest rates first, then pay them off ASAP.

Clear up your super

  • If you have lost super or multiple funds now’s a good time to roll everything into one fund to avoid multiple fees. If your super isn’t doing so super, ring your fund manager and re-consider the investment option. Consider salary sacrificing to add more into your pot. And if you earn $37,697 or less (for the 2018/2019 year), the federal government pays $0.50 for every dollar you contribute to your super fund in after-tax dollars, up to a maximum co-contribution of $500 a year.

Prepay investment loan interest

  • If you have an investment property if you prepay up to 13 months interest on the investment loan it can be quite a score. You’ll reduce your taxable income for the next financial year by bringing forward a deduction on the interest paid. If you have a year of high earnings, that could be useful to lower the taxable amount.

Check your credit rating

  • Now’s probably a good time to bite the bullet and check your credit rating – no matter how scary the thought is. There are several free online sites which will quickly check your score for you. If you have a bad credit rating the best way to improve it is to start paying all your bills on time, get rid of multiple cards and start reducing your outstanding credit balances.

Reduce your capital gains tax

  • Any capital gains you make during the year will be subject to tax. However, you could sell other assets that have accrued a capital loss so you can offset your gain and reduce your tax liability.

Review expenses

  • It’s often the little (and sometimes not so little) things that add up. In other words, haul out your phone contracts, utility bills, insurance policies and loans and call each provider to see if you can get a cheaper quote. If not, do a little research and consider switching by logging onto a comparison site such as finder.com.au. By turning a blind eye money could be flowing out unnecessarily.

Take out insurance

  • It’s a good idea for the main breadwinner – particularly if there are kids to support – to take out income protection insurance which is tax deductible.

Plan a goal or reward

  • Making sure you have something to look forward to in during this new financial year is a great savings motivator. Work towards something fun and rewarding – like a holiday or something even bigger like a new car or house. You can also reward yourself by treating yourself to a little something if you meet your major savings goals each month. Who knows you might end up enjoying saving!

  • Use a calculator to get an estimate of how much you can borrow.
    Try one here.

  • See if you qualify. To get a more accurate idea of how much you can borrow with State Custodians,
    click here.

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 13 72 62.