If, like most people, you are already in need of a fresh start and haven’t quite reached some of the goals you set out to achieve when the clock struck 12 on New Year’s, then you’re in luck, because you’ve got a chance for a redo – the new financial year is upon us, and it’s a great opportunity to reset! Whether it’s goals that’ve slipped by the wayside or fresh thinking, take this time to reevaluate the all-important balance of how your financial goals fit in with your life goals. Here are 11 tips to help you start strong this financial year.
You’ve just wrapped up the last financial year, making it the perfect time to take stock of where you currently stand. This is a particularly critical step if you’re looking at diving into new opportunities. Conduct a thorough financial health check-up, and carefully assess your income, expenses, debt levels, and savings. This can help you identify opportunities to save, reduce debt, and make more informed investment decisions.
If you’ve got a home loan, keep a sharp eye on your term. As interest rates fluctuate throughout the year, refinancing can result in significant savings over time. Don’t rule out switching lenders, too – while it can be a bit of a process, often you’ll be rewarded with incentives or more favourable terms.
Whether you’re looking to buy your first home, upgrade, invest in property, or save for a new car, new furniture, or to start a business, concise, realistic goals will keep you on track. For property or business investment, consider these key steps:
While often subject to the set-and-forget treatment, your super can be a valuable tool in your property journey. The First Home Super Saver Scheme allows first home buyers to make voluntary super contributions, which can then be withdrawn to finance a first home, and a Self-Managed Super Fund can offer a pathway (albeit a strict one) for property investors. Keep abreast of Government policy changes, too, as these can significantly impact the value of your super.
Negative gearing continues to be a powerful strategy used by clued-up property investors, and for good reason. In a nutshell, negative gearing means the costs associated with your investment property exceed the income you receive from it. This loss can then be deducted from other sources of taxable income, such as your salary or wages, while you prioritise long-term capital gains.
If you can’t afford to buy in your dream location just yet, but are keen to get on the property ladder, RentVesting is a great option. RentVesting means you rent where you want to live, but invest in property elsewhere. This allows you to access the wealth-building benefits of entering the property market without compromising the lifestyle you love.
The financial landscape, including property and business markets, is always on the move, so staying flexible is a must. Whether it’s adjusting your investment portfolio or reallocating funds in your business, change is a constant that you’ll need to accept.
A smart start to the financial year is only useful if you’ve also got your health in shape. Not only will it ensure you’re in a position to reap the benefits of your hard work, but investing in good health practices will help you stay energised and focused on your financial goals for the year ahead while keeping stress at bay too.
Mental health plays a significant role in your overall well-being, influencing how you think, feel, and handle everyday challenges. Keeping your mental health in tip-top shape means you’ll be more productive, fulfilled, resilient, and better at managing stress.
It’s only possible to prioritise your physical and mental health if you’ve carved out enough time to get the work/life balance right. And the success of your financial year and your relationships depend on this.
While you’re probably patting yourself on the back for making it through the last tax period, now’s the perfect time to get proactive with your tax planning for the year ahead. Review your finances, ensure your current structure is tax-efficient, and assess whether any tax-saving opportunities exist. It’s worth meeting with an accountant, particularly if there have been any changes to your circumstances.
The start of the financial year is your opportunity to reset, plan, and take control of your financial and broader well-being. A smart start with key strategies around tax, budgeting, property investment, and an ongoing investment in your physical and mental health will set you up for a stress-free and successful year ahead. If you’re growing your property portfolio or just getting started, expert real estate advice can make all the difference. Speak with your local First National Real Estate team for invaluable local property insights.