Top 12 Financial Health Tips for the New Financial Year

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How to put your best financial foot forward in 2024-25

From our Director of Aintree Group Wealth – James Stephen

The start of a new financial year is the perfect time for Australians to review and update their financial plans. It offers a fresh start to set new financial goals, reassess your budget, and make any necessary adjustments based on the previous year’s experiences.

With potential changes to tax regulations and contribution limits, it’s essential to ensure your financial strategies are up-to-date and taking full advantage of any new benefits.

Additionally, this is a great time to evaluate your investments, insurance coverage, and superannuation contributions to ensure they align with your long-term objectives.

By taking a proactive approach to your financial health now, you can establish a solid foundation for greater financial stability and growth in the coming year.

We recommend you chat to your professional advisor about taking action on the following items, to start the new financial year out on the right note:

1. Review and Update Your Budget

  • Assess Your Expenses: Review your current spending habits and identify areas where you can cut back.
  • Set Financial Goals: Establish short-term and long-term financial goals and create a budget that aligns with these objectives.

2. Maximise Superannuation Contributions

  • Concessional Contributions: Consider making pre-tax contributions up to the concessional cap ($27,500 for the 2023-2024 financial year).
  • Non-Concessional Contributions: Utilize post-tax contributions to maximize your superannuation savings, keeping within the annual cap.

3. Take Advantage of Government Incentives

  • Superannuation Co-Contribution: If you’re a low or middle-income earner, take advantage of the government co-contribution scheme.
  • First Home Super Saver Scheme: If you’re saving for your first home, consider using this scheme to boost your deposit savings through superannuation.

4. Review Investment Portfolio

  • Diversify Investments: Ensure your portfolio is well-diversified to mitigate risk and take advantage of different market opportunities.
  • Rebalance Your Portfolio: Periodically review and adjust your investment mix to align with your risk tolerance and financial goals.

5. Tax Planning

  • Claim Deductions: Ensure you’re claiming all eligible deductions, such as work-related expenses, charitable donations, and investment costs.
  • Tax Offset Eligibility: Check if you’re eligible for any tax offsets, such as the Low and Middle Income Tax Offset (LMITO).

6. Review Insurance Coverage

  • Evaluate Needs: Regularly review your policies to ensure you’re not paying for coverage you don’t need. Adjust your coverage to match your current situation.
  • Specific Items: Remove specific items from coverage that you no longer own or need coverage for.
  • Life Insurance: Assess whether your life insurance coverage is sufficient given your current circumstances.
  • Income Protection: Ensure you have adequate income protection insurance to safeguard against unexpected loss of income.

7. Estate Planning

  • Update Your Will: Ensure your will reflects your current wishes and any significant life changes. Consider whether your executor is still appropriate.
  • Nominate Beneficiaries: Review and update the beneficiaries of your superannuation and insurance policies
  • Check Attorney’s: Have you got a power of attorney in place? Is the person/s still appropriate?

    8. Debt Management

    • Pay Down High-Interest Debt: Focus on reducing high-interest debts, such as credit card balances and personal loans.
    • Refinance Home Loan: Consider refinancing your home loan to take advantage of lower interest rates and better terms.

    9. Emergency Fund

    • Build or Replenish: Ensure you have an emergency fund that covers at least 3-6 months of living expenses to protect against unforeseen financial setbacks.

    10. Increase Your Income

    • Up-Skill or Re-Skill: Invest in further education or training to enhance your skills and improve your employability.
    • Side Hustles: Consider starting a side business or freelance work to generate additional income.
    • Negotiation: Don’t be afraid to negotiate your salary or seek promotions at your current job.
    • Invest in Income-Producing Assets: Look into investments that provide regular income, such as dividend-paying stocks, bonds, or rental properties.

    11. Improve Your Health

    • Healthy Lifestyle: Adopt a healthy lifestyle by incorporating regular exercise, a balanced diet, and sufficient sleep into your routine.
    • Preventative Care: Schedule regular health check-ups and preventative care appointments to maintain your well-being and reduce long-term healthcare costs.

    12. Stay Informed

    • Financial News: Keep abreast of the latest financial news and regulatory changes that could impact your financial planning.
    • Professional Advice: Consider consulting with a financial adviser to get personalized advice tailored to your financial situation and goals.

    By implementing these financial planning tips, you can better navigate the new financial year, optimize your financial health, and work towards achieving your financial goals.

    If you’d like to book an appointment with Aintree Group Wealth to discuss anything listed above in more detail, click here.