The new financial year is the perfect time to take stock of your current financial situation and set yourself up for success in the year ahead. Whether you need to tidy up paperwork, reassess your portfolio, or deal with outstanding issues, there are several steps you can take to ensure your finances are in order. In this blog post, we'll outline ways to start the financial year strong and provide insights on how Grow My Money can help you achieve financial success.
Set a budget
Setting a budget is one of the first steps you can take towards financial success. This can help you track your spending and identify any areas where you may be overspending. Start by looking at your income and expenses over the past year, then set realistic goals for the upcoming year. Many online budgeting tools are available to help you get started and stay on track.
Organise your paperwork
Another important step towards financial success is organising your paperwork. This includes everything from bank statements and bills to tax documents and receipts. By keeping your paperwork organised and easily accessible, you'll be better equipped to stay on top of your finances and make informed decisions.
Reassess your portfolio
If you have investments, now is the perfect time to reassess your portfolio. Take a look at your current investments and assess how they've performed over the past year. Consider whether your current mix of investments aligns with your financial goals and risk tolerance. Remember, diversification is key to minimising risk and maximising returns.
Review your insurance policies
Insurance is an essential part of any financial plan. Take some time to review your current insurance policies to ensure you have adequate coverage for your needs. This includes everything from health and life insurance to auto and home insurance. Consider whether you need to make any changes to your coverage based on your current circumstances.
Review your mortgage
It's important to stay on top of your mortgage payments and ensure you get the best deal possible. Here are a few tips for managing your mortgage:
- Review your current mortgage: Take a look at your current mortgage terms and interest rate to see if there are any areas where you can save money. If you've been making timely payments and have improved your credit score, you may be able to negotiate a lower interest rate or refinance your mortgage.
- Create a budget: Make a budget that includes your mortgage payments and other expenses. This will help you stay on track and avoid any missed payments.
- Consider making extra payments: When you can afford it, making extra payments on your mortgage to help you pay off your loan faster and save money on interest. Grow My Money can help with this by paying your cashback directly into your mortgage account. Money Smart also has some great tips on paying off your mortgage faster.
- Seek professional advice: If you're struggling to manage your mortgage, consider seeking advice from a financial advisor or mortgage broker. They can help you find the best mortgage options for your situation and guide you on staying on top of your payments.
Review your superannuation
Reviewing your superannuation is one of the most important steps towards financial security. Here are six important reasons to review your superannuation:
- Investment strategy: Reviewing your superannuation account is essential to ensure that your investments and risk strategy are still suitable. People’s goals and circumstances change over time, and it's vital to adjust your investment strategy accordingly to ensure that you're not taking on an unacceptable level of risk. Doing so will ensure that you are investing funds in line with your earning capacity for the most significant benefit.
- Fees: Check if the fees charged by your fund are reasonable. High fees take a chunk out of returns and can significantly impact your account balance in the long run. This makes sense, as you don't want unnecessary management fees eating up your balance. Checking fees is essential; in some cases, fund holders may be paying too much for what they are getting.
- Insurance policies: It's easy to forget that you have insurance through your super account, which may not suit your needs over time. Reviewing your policies ensures that you’re not paying for insurance you no longer need or increasing the sum insured if you require it.
- Employer contributions: Employers have a legal requirement to make contributions into your superannuation account, but checking if it's being done is still essential. Payroll errors happen, and your account balance won't grow as it should if you're not receiving your employer contributions.
- Death benefit: Review whether you have the right death benefit nomination in place. Having a death nomination ensures that in the event of your unexpected death, your wish will be respected. Reviewing this ensures that your nominated beneficiaries are still relevant, and it’s a good idea to stay on top of this regularly.
- Check out SuperGuide for more superannuation tips and strategies.
Sign up to Grow My Money
Paying down your mortgage faster or adding more super contributions is easy with Grow My Money, a platform designed to help you live mortgage-free, build a better retirement and ease the cost of living. With Grow My Money, you can earn up to 15% cashback when you shop at popular brands like Myer, The Good Guys, or Everyday Market from Woolworths and more. Plus, it's not just for individuals - Grow My Money is a game-changer for those who don’t receive superannuation guarantee (SG) contributions from an employer, such as carers, small business owners and sole traders. You can earn cashback every time you make an eligible purchase, whether online, through our user-friendly app, or at in-store retailers. The best part? We'll deposit your cashback directly into your mortgage, offset or super fund as soon as we receive the funds from the retailers.
Setting yourself up for financial success in the new year requires a combination of planning, organisation, and action. By setting a budget, organising your paperwork, reassessing your investments, reviewing your insurance, and signing up to Grow My Money, you can take control of your finances and move towards a brighter financial future. Start implementing these steps today and reap the rewards in the years to come. Sign up to Grow My Money today.
This article contains general advice only and does not take account of an individual’s objectives, financial situation or needs. It has been prepared for informational purposes only. Before acting on this general advice, individuals need to consider its appropriateness having regard to their objectives, financial situation or needs and should seek their own independent advice.