8 Tips to Start the New Financial Year
The start of the financial year is a great period to build solid financial foundations for the coming year. However, it can also be daunting for some who are not as organized. It's simpler than you think! Here are 8 tips to start the new financial year.
1: Understand your financial position
Before you create your brilliant financial strategy, gather and assess as much information as possible of your situation. This will allow you to take advantage of every opportunity and reduce your exposure to risk.
2: Super: Check?
Make sure that everything is sweet with your super because your future self will thank you for it. Check that your employer is actually contributing to your super fund and tailor the investments accordingly.
3: Take advantage of salary sacrifice
There are a number of items available for salary sacrifice that you will probably buy in the next year. Before you buy, check if you can salary sacrifice it. Depending on what you purchase, you can reduce your taxable income considerably if you use it wisely.
4: Set up good financial habits
Automate your money to prevent bad spending habits. You can now set up your bank account to automatically transfer money from your salary account to your savings account. Employers can also pay your wages into different accounts.
5: Be debt free
Keep track of existing debt, interest payments (if unavoidable) and credit card use. The use of credit cards is ok but paying interest on borrowed money isn't so great.
6: Good record keeping
Create a system or log of the items you buy which can be used for tax deduction. This will make your life much easier when it comes to tax time, and also ensure that you don't miss out on items that you can claim.
7: Make technology your friend
There are dozens of accessible financial management applications out in the market today. If you're not an organizational wizard at creating your own systems, try your luck with a few of these apps.
8: Set milestones & timelines
Maximise your chances of success by periodically evaluating your financial results. Take positive action and keep on track to your financial goals. So there you have it, 8 tips to start the new financial year.