Start Your Financial Year With a Confident Smile

The start of a new financial year is always a good time to review your finances, and make sure they’re all on track. To help you start this financial year with a confident smile, we present our 8 steps to financial readiness for 2018.

1.Check in on your goals.

You can’t start financial planning until you know your objectives. Write down your goals for the next financial year (and beyond) to ensure your plans will get you there. If you already have your goals on paper, take some time to make sure your plan is still on track, and update your goals if necessary.

2.Make sure you’re up to date on super laws.

There have been several changes to superannuation laws recently, affecting a wide range of Australians. Some of the key changes are:

-Eligible first home buyers can now save for a home deposit using their super.

-Your personal super contributions can now be claimed as tax deductible (in most cases).

-More people are now eligible for a tax offset for contributions into a spouse’s super account, thanks to an increase to spouse super contribution tax offset thresholds.

-Any unused amount of before-tax contribution limits to your super can be carried over to the following year, from 1 July 2018 on.

3.Check you’re on track for retirement.

No matter how far away your retirement is, it’s always worth being clear on how you’re tracking. An easy way to get started is to check whether your super’s invested in the right option for your individual circumstances. Have a think about what type of career you’d like to have in retirement, and how you might fund it!

4.Prepare for tax time.

You can’t finish your tax return until the end of the financial year, but getting ready for it can take a lot of the stress away when the time rolls around. Getting your tax receipts in order, being clear on legislation changes, and understanding your tax deduction entitlements now will save you on time and patience when July comes.

5.Give your budget some love.

Your budget needs to change with your situation. Take some time to check your budget vs your back statements and see whether they match. The end of the financial year is also a good time to check if you can get a better deal on your regular expenses, such as your internet, phone and utilities.

It’s a wonderful time to step back and look at your overall spending patterns. If the way you’re spending money doesn’t match your budget, you might want to make some changes to one or both.

6.Check your will reflects your wishes.

Make sure your will still reflects your life. Have a look whether your money is properly protected and invested following your circumstances and goals.

It is also worth checking that your super fund beneficiaries are up to date. If you haven’t nominated any beneficiaries, or haven’t updated them to match your current circumstances, then the money may not go where you want it to.

7.Review your insurance.

Having enough insurance in place means that all you’ve saved and worked for in life is protected. It also means that you won’t be a financial burden to anyone if something goes wrong.

8.Stockpile your emergency savings.

Similarly, if you don’t already have an emergency fund, it’s a good idea to build one into your budget. One in five Australians don’t have enough money set aside to cover a $500 emergency!¹ As little as $500 can give you some peace of mind and reduce your potential reliance on high interest borrowing options, such as credit cards.

We at 7Wealth are here to help. Understanding your finances and keeping on top of them throughout changes in your life can help immensely in both building your wealth and reducing your stress. Get in touch if you have any questions or need some financial advice to reach your goals.

¹ Finder, May 2016 media release, How a $500 emergency could spell financial ruin for millions of cash-strapped Aussies https://www.finder.com.au/press-release-may-2016-rainy-day-savings

7Wealth Pty Ltd ABN 44 609 210 246, is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706
This blog contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.