Put your best foot forward as we start the new financial year

Ashleigh Pano is a Client Advocate with Gilkison Group.

The EOFY tends to be a time of slight chaos – not only is it the busiest time of year for our industry, but it’s also that moment of panic in which we collectively realise we’re halfway through the year. Are you on track to enjoy the Rich Life goals you set for 2022? If your answer to that is yes, then congratulations! And if it is no, then let’s see what we can do about that.

To help ensure you put your best foot forward this new financial year we’ve compiled a list of our top tips, starting with a few quick wins that will help you gain momentum to tackle the bigger items:

Clean up your paperwork

Holding onto any old or unnecessary paperwork creates clutter and can make you feel overwhelmed just thinking about the state of your home office. Opt-in for electronic statements and email correspondence where you can, or use an online system or app for any paperwork you’re required to hold on to. Furthermore, if tax time always feels like a scramble, set a plan to keep on top of things in real time this financial year. Popular solutions include setting up folders in your email inbox for receipts, or downloading the ATO MyDeduction app.

Automate as much as possible

Whether it’s your savings, an automatic investment plan, loan repayments or having your bills direct debited out of your account, the less you are required to physically think about and do, the better your experience will be… and the less overdue payments you might end up incurring!

Allocate your tax return wisely

If you’re due to receive a tax refund this year, we encourage you to use it wisely. Consider allocating a portion of your refund to future expenses like paying off some debt, building your savings or even increasing your investments. Splitting your refund is a great way to enjoy a Rich Life now and in the future.

Cancel unused or unnecessary subscriptions

Make a list of all the subscriptions you pay for, whether monthly or annually – streaming services, gym membership, newspaper subscriptions, phone plans, extra iCloud storage, antivirus software etc. Once you have the list together, check your bank statement for any forgotten ones you may have missed then apply a simple test. Ask yourself – how often do I use this subscription, are there cheaper alternatives available and does it make my life noticeably better? If the answer is no, cancel it.

Do a financial deep dive

Now you’ve got those quick wins off your list, now it’s time to go a little deeper and get introspective. Putting market noise and rising interest rates to one side, reflect on what happened this last financial year. Starting with the obvious items (income, spending, investing, super), reflect on more than just the numbers and ask yourself the below questions:

What did you get wrong?
What would you do differently?
How can you make the new financial year better?

Based on these questions, what positive changes can you make this financial year? How can you better focus on growth?

Review your cash flow

The new financial year is a great opportunity to review your cash flow. Whilst you may not be able to change your income, you do have the power to optimise the way you spend it. With growth and your Rich Life goals in mind, we can help you establish a Cash Flow Management System. A Cash Flow Management System is a tool used to create transparency and consistency with your day-to-day expenditure, without “setting a budget” only to ignore it and wonder where the money went or why you aren’t in the position you wanted to be in come 12-months from now.

For more information, please see Cashflow Management System in the Knowledge Centre.

Check your Superannuation

If you’re still working, it’s important to regularly check your super balance and make sure all your employer contributions are matching up – even if it’s allocated on your pay slip, it doesn’t guarantee that it’s been paid to your fund. Furthermore, if you’ve got some surplus income to play with, consider whether additional contributions would help maximise your financial progress.

Reassess your risk profile

The past few years have certainly put us through our paces with ‘unprecedented’ events. Regardless of the return of your portfolio, the new financial year is a good opportunity to review your current situation and reassess what your risk profile is. With new experiences under your belt, a change in your financial situation or a shift in your Rich Life goals, it’s possible that your risk profile may have changed.

Review your investment plans

Forget about your current returns – you can’t control those. Instead, reflect on how you can grow your investments. Is it time to add more to average down, to broaden your investment base?

Review your home loan

Now that interest rates are rising, it is a great time to review your home loan. Talk to your mortgage broker or bank regarding your loan and consider the various structures and rates available to see what the best option is for you.

While the Gilkison team can help by keeping you on track with the bigger picture items, it is often the small things that add up and make all the difference in achieving those long-term goals. We are always here to help with whatever it is that you need. If you have any questions or require any assistance, please get in touch.