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Get your finances off to a promising start in 2022!

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?

4. Make a plan to pay down debts

Take a few minutes now to set new savings goals for the New Year, including how much you would like to add to your retirement nest egg, your children’s education fund, or the down payment on a home. You should also reset how much you plan to pay on your personal loans, debts, and home mortgage accounts.

5. Get an expert opinion

You may not need an advisor to recommend sound financial planning fundamentals, but it can still be a good choice to seek expert advice on any financial plans you have for yourself and your family. A good adviser can be an invaluable guide through the superannuation minefield or any other concerns you have for your current and future budget.

Contact Lynden Group Melbourne to see how we can assist you with our professional services and help you comply with tax obligations.

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