Financial New Year: Kick Off Strong in 2023

Financial New Year Kick Off Strong in 2023.

As we start the new year, we often reflect on the past 12 months and think about our financial goals for the future. As a business owner, worker, or retiree, it’s important to think about our money goals and what we want to achieve. A financial new year checklist can help us see where we need to improve and make plans to reach our goals.

Here are some key considerations to keep in mind as we move forward:

Home Loan Review

Are you still making payments on a loan? It’s a good idea to take a look at your progress and see if there are any changes you can make. For example, can you increase the amount or frequency of your payments to save on interest? Check when your fixed interest rate loan will change to a variable rate and how it may impact your finances.

Other Debts

Take a look at all the loans, credit cards, and other debts you are currently paying off. If your household debts add up to more than 10% of your income, it’s important to make a plan to pay them off. One way to do this is by consolidating your debts, which can help lower the interest you pay. But, be careful not to use this as an excuse to spend more money.

Savings

Think about how much you saved last year and if you spent money first and then saved the rest. If your savings aren’t where you want them to be, set aside a part of your income each month as a great strategy. Set aside 10% of your income for a regular savings plan. This way, you’ll save first before spending.

Insurance

If you become ill or have an accident, make sure you have enough insurance to protect yourself and your family. Review your insurance policies to make sure you’re covered. Have you checked your insurance recently?

Superannuation

Make sure you’re on track for your retirement goals by checking the value of your super. You may want to ask yourself: How much is my super worth currently? Are the fees for managing my super fair? And am I putting enough money into my super to meet my retirement needs? If you’re not sure about the answers to these questions, now is a great time to check and see where you stand.

Your Will

Creating a Will is simple and affordable. As life changes, so do our relationships, family and interests. Not updating these changes in our Will can lead to legal challenges. It’s important to also review and update our Powers of Attorney and Medical Directives as part of our estate planning.

Invest in your future this financial new year

Start the new year off on the right foot by reviewing your finances today. By taking a close look at your debts, savings, insurance, superannuation, and will, you can set realistic financial goals for the new year. By doing so, you may discover that your other New Year’s objectives become more attainable as well. So, don’t wait any longer; take control of your finances and start the new year strong.