New Year is the best chance to set new goals, have new hopes and achieve new dreams. Many of us have our own New Year's resolutions, and if better finance is written on your list, we have some tips that may help you stick to your plan.
1. Look back to move forward
During the year, there might be times when you felt like the budget was getting out of hand, you struggled with paying a fixed expense or wished you had more savings to spend on a long holiday break. Yet, sometimes you might feel relieved that the savings you had in the bank account were enough to cover your child's school trip. All of the moments are worth experiencing if you look back and learn something from the past.
2. Calculate your net worth
If you haven’t already done so, the New Year is as good a time as any to determine what you’re worth financially. Calculating your net worth is a key step in assessing your financial health and reaching your financial goals.
Looking closely at all your assets and liabilities will help to create a clear picture of where you are prioritizing your current spending and saving and where you need to make changes in those habits.
3. Reassess your super fund
Now is always the ideal time to take a close interest in your super and think about the lifestyle you would like in retirement. There’s still time left to boost your super account if necessary and to review the way your super is invested to ensure you reach your financial goals.
We would like to suggest some tips for your future saving:
Take a look at your contributions:
Your employer may be contributing on your behalf but you may want to put more in to hit your retirement savings target. One way to make contributions is from your income before you pay tax. This can be done by having a formal agreement with your employers.
If you're curious how this can help, feel free to reach out to us.
Reviewing your superannuation:
- Check how much you are paying. Some funds charge entry fees on every contribution you make; administration, investment management and other ongoing fees; fees if you switch between investment options; and fees if you leave the fund.
- Work out what other benefits you get from your fund. Is the insurance you get from your super fund worth it? What about access to home loan, and so on?
- Look at your fund's returns. Is the performance consistent with the asset allocation (and risk) you've got?