New year, new finances

Your priorities and goals will change depending on what’s important to you at different stages of your life, but there are some major things you should make a habit of reviewing each year.

Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

With a new year upon us, there’s no better time to take stock of your finances. Are you on track with your goals? Or do you still have work to do? Wherever you are on your journey, regularly checking in on your progress should be a priority for everyone.

1. Budget

The first step to a secure financial future is to create a budget that allows you to spend the way you want to while still meeting your savings goals.

Having a loose budget is the foundation of good money management, and can be as simple as just making sure you spend less than you earn. This year, make the promise to get serious about your money and create a proper budget, allocating funds for different uses, including regular savings.

2. Savings

The New Year is a great time to review your savings goals and make sure you’re on track.

If saving is a hard habit to form, try setting a goal that you care about. Whether it’s a better emergency fund, saving for the latest iPhone or a much-needed holiday, setting an achievable goal can help keep you motivated as you work towards your dreams.

3. Retirement

It might feel like a long time away for some of us, but one important savings goal you need to consider is retirement. And the sooner you start planning for life after work, the more likely it is that you can enjoy your twilight years without financial difficulties.

Make this the year you start adding extra contributions to your super, or open a savings account dedicated to your retirement fund.

4. Debt

Have you been ignoring your credit card debt? One of the best ways to improve the health of your finances this year is to eliminate any debt that’s weighing you down, or at least make a start on it.

If that seems too difficult to even begin thinking about, take control by consolidating all of your outstanding debt into a personal loan with a fixed interest rate¹.

5. Home loan

Not all debt is bad debt. A home loan can help lay a strong foundation for your financial future, but there’s still no reason for you to be paying more than you have to on your mortgage.

With rates at an all-time low, now is the perfect time to review your home loan and make sure you have the best possible deal. You can book a free home loan health check with no obligations and no strings attached. Speak to one of our home loan specialists today for help finding the perfect low interest home loan for your situation.

6. Insurance

The last thing to do as part of your new financial plan is to check your insurance, especially the three big policies: car insurance, home and contents insurance and life insurance.

As your lifestyle and situation changes over the years, you may need to upgrade your insurance. For example, when furnishing your new home, you should consider taking out or increasing the value of your contents insurance.

If you already have home and contents insurance, check your level of cover to understand what events are covered in your premium – particularly whether you are sufficiently protected from damage caused by natural disasters such as floods, storms and fires.