New Financial Year, New You!
Detox your finances with these easy-to-follow resolutions:
1. Make a budget – and use it!
You’ll often see advice like this talking about budgets. You’ve probably even made a budget before – but have you stuck to it? Don’t look on it as a list of things you’re missing out on. It’s really a great tool to help you get what you want. Get smart and automate it where possible – for example, set up automatic bill payments or regular transfers to savings. Make sure you budget for entertainment too, like dining out or going to movies. Do make sure you adjust your budget as your circumstances change.
2. Do your paperwork each week
The worst thing about tax time is dealing with the paperwork. Make this the year when you spend a few minutes every week to save yourself days of pain at the end. The key here is organisation. Set up a spreadsheet to record and add up your deductions. Most register receipts will fade or darken over time, so scan them and store them in e-folder. And back up!. If you prefer, make lasting copies and store them in an expanding file.
3. Sort out your Super
If you’re like most Australians, you know that your superannuation is important to ensure quality of life in retirement. But it seems a long way away, and complicated, so you feel the odd twinge of guilt or anxiety but ignore it, year after year. Make sure you find any lost super, consolidate it in a fund with great performance, and investigate whether contributing extra every pay cheque or making a lump sum deposit might be right for you. Contact your Super fund, they’ll guide you through it.
4. Pay Down Your Credit Cards.
If you owe money on your credit cards, determine how much you can realistically afford to pay off during the year. For best results, try not to charge additional purchases on those cards while you're trying to pay down what you owe. If you have high interest credit card balances, consider whether it would be more beneficial to pay off those high interest debts or to add to your savings.
5. Talk to the Experts
A financial adviser can help you with every area of your finances – from creating a budget to investments and beyond. Our new service Champion Debt Solutions can also help you set up a budget, manage your finances and consolidate your debts. Getting on track could be as easy as making a phone call.