Money Bite-Size Read:
- Each time 1 July comes around, you have a fresh financial year ahead of you.
- It’s an opportunity to embrace a new financial year and the possibilities it holds.
- With the mantra of new financial year, new you, it’s time to pick the goals you want to achieve this year.
The Money Bites Take:
The new financial year gives you 12 months to start afresh and to use money as a tool to put the changes you want to see in motion.
The new financial year is upon us.
When 1 July rolls around each year, it’s the start of a new tax year. Most of us forget about it until we get a call from our tax accountant to prepare our receipts. However, it could be an opportunity in disguise.
1 July is an opportunity to start fresh with new financial habits.
We typically set goals at the start of the year as financial new year resolutions. It takes 18 to 254 days to form a habit so it’s important to be realistic when making goals and to set money resolutions that you can achieve.
Many people think of this as a spring clean for their finances. Think of it as a new financial year, new you. It’s a whole new financial year ahead of you so that the next time 1 July appears on your calendar, you’ll be in a better financial position.
Here’s how to embrace a new financial year:
1. Prepare for tax time
Are you ready for tax time? Many of us are not organised when it comes to preparing our taxes. This can lead to making tax mistakes because we don’t keep track of our receipts. That way, you can keep track of your earnings and expenses to help predict whether you’ll get a tax return this year.
2. Set meaningful goals
Do you care about your financial goals? It’s very easy to make goals but more difficult to stick to achieving them. What will keep you going is being clear on your purpose and why you’re chasing your goal. Write down your goals and surround yourself with positive reinforcement to help you achieve them.
3. Review your regular bills
When is the last time you evaluated your power bills? We pay bills like this on a regular basis and yet very few of us take the time to compare other options. When your have tools like comparison websites at your fingertips, it’s easier to review bills including your electricity bill, phone bill and weekly grocery bills. Take the time to compare options now to save money during the year.
4. Know your spending habits
Do you know where your money goes? Many of us know we should keep tabs on our spending habits. A budget can be an effective way to do this, with budget apps an effective way to save money on the move. The advantage of knowing your spending choices means you can be happier in where your hard-earned money goes each pay day.
5. Check your retirement is heading in the right direction
What is your retirement fund? Many of us don’t think about our retirement fund until we need it. The problem is that your younger years are the time when your retirement fund is growing. While there are problems with the super system, it’s worth taking time to sort out your super. This includes ensuring that your employer is paying money into your retirement fund and making sure that your super fund is working for you.
6. Ensure your emergency fund is emergency ready
The power of an emergency fund is that it’s money you can access in an emergency. It’s obvious why you need an emergency fund and you may have taken steps to build your emergency fund already. The important third step is to then top up your emergency fund when emergencies happen. It’s the same reason you switch over your batteries in a fire alarm so that it continues to be effective. Make sure your emergency fund continues to be useful in an emergency.
How do you want your finances to look a year from now?
Picture yourself a year from now and use the next 12 months to make it happen. It’s time to embrace a new financial year and its possibilities, with the mantra of new financial year, new you.