Don’t let the winter cold distract you from your financial goals.
The winter months can be bleak. Sometimes a long and often expensive visit to the shopping centre seems the only weekend option. But winter can also be the perfect time to prepare your strategies for the new financial year. Here are five tactics that could leave you in far better financial shape by the time spring has sprung.
1 Understand changes that have come into effect
1 July is often the time when many legislative changes come into effect. It’s important to understand how these changes can impact your financial goals and adjust your plans accordingly. For example, this year the Medicare levy increase from 1.5% to 2% could adjust your net pay.
2 Set budgets for the financial year
Just as organisations create new budgets at the beginning of each financial year, you should do the same for your household. Prepare for upcoming financial responsibilities, savings, investments and holidays. Set financial goals and figure out how and where you can cut costs.
3 Get to the point
Use the downtime to consider all of the non-currency accounts you hold, such as frequent flyer memberships and credit card reward points etc. Figure out how best to combine the points or spend them, before they expire. Spoil yourself with a gift, buy a household necessity or book free flights for a summer break. And while you’re at it, look into whether a different credit card, or frequent flyer account, might offer you better value during the next year.
4 Familiarise yourself with your super
If you are aware of how your superannuation is invested then you’re in the minority. Most Australians don’t know their superannuation balance or its investment mix. As you move throughout various stages of life then your appetite for risk is likely to change dramatically. Your superannuation investment strategy should change with it.
5 Stay healthy
Fitness experts are well aware of the negative effects the cold and dark of winter can have on their clients’ health. But they also recognise that some people use the different weather to change their exercise plan and discover new, good habits. If you switch from swimming to running, or from outdoor to gym-based exercise, or if you simply begin to exercise more, your fitness improvement will almost always translate to a healthier hip pocket as you’ll be avoiding increasingly expensive future medical costs.
Information in this web page is based on regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document.
This web page may contain general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.