Kick the new financial year off right with this money checklist.
For most people, the thought of upturning their lives and finances for careful consideration is a confronting prospect. Particularly as the new financial year approaches, it can seem like a whole load of unnecessary stress at a typically stressful time of year. But in actual fact it can be a great opportunity to take stock of where you’re at and get your ducks in a row for the new year ahead.
We’ve pulled together a checklist to help get yourself organised before the clock ticks over.
1. Check your subscriptions
Take this opportunity to save yourself from unused or forgotten subscriptions that are charging you monthly. A great way to do this is by auditing your emails for receipts and even by contacting your bank to gain an understanding of where those direct debits are going every month.
By compiling a list, you’ll be able to evaluate what you’re actually using and what you can cut from your monthly spending, saving a lot of money in the process. If you’re subscribed to your favourite online, daily newspaper but read it at work every day? Think about cancelling it. You’ll save money and feel better for it, trust us.
2. Review your health insurance
The end of financial year provides a great opportunity to save some money on your health insurance cover. If you’re a high income earner or have just turned 31, then taking out a new health insurance policy before July 1 can have financial benefits for you. Even if you’re not in that bracket, there are still plenty of ways to benefit at this time of year.
Do your research on the options that might be the right fit for you. If you’re 25, it’s unlikely you’ll need cover for a hip replacement any time soon, so talk to a professional about what stage of life you’re in and what you require from your health insurer.
3. Check your super
Superannuation isn’t a word that excites many of us. We know it’s there and that a certain amount of our salary is deposited into it every month. But for the most part, we forget about it. As the new financial year approaches, there are a number of things we can do to ensure we’re getting the most out of our superannuation.
If you’ve worked at multiple companies and have more than one superannuation account, now’s the time to consolidate your accounts into one and stop paying multiple sets of fees.
Another great way to pump up your super before July 1 is to arrange salary sacrificing for the year ahead. By making personal contributions to your superannuation, on top of those contributed by your employer, you’ll be adding to your retirement fund, while potentially paying less tax.
Take stock of your monthly expenses. It can be confronting, but future you will thank you for it.
4. Take stock (and deal) with any debts
Taking stock more generally at the end of a financial year is really beneficial for managing your personal budget and getting on top of existing debts. By writing down all of your monthly expenses (honestly), you’re able to track monthly spending and assess whether all of those costs are unnecessary. Mobile apps like Pocketbook are a great way to do this digitally (if that’s what you prefer) and can help you keep on top of where your money is going long-term.
By cutting down those unnecessary costs, you could use the additional money to help pay off existing debts and even put some away to help achieve a long-term goal, like a nice holiday.