Habits To Take Into The New Financial Year
The new financial year has begun and we are ready to implement some savvy financial habits to set us up for a successful next 12 months. Not from Australia? Keep reading! These habits will be helpful no matter what financial year you work to.
Make Your Finances A Priority
A little time each day (or week) record-keeping your finances will save a big headache later on come the end of financial year. It’s so much harder to remember exactly what each receipt or expense was for when you’re looking at it months later. Prioritising it as part of your weekly routine will make the task feel a lot less tedious, If you’re still feeling overwhelmed, outsource and bring in someone to help keep on top of your paperwork.
Put Systems In Place, Embraces Technology (& Store Paper)
On that note, embrace technology to help you keep records of your finances, the ATO MyDeductions App allows you to upload your expenses as you go and syncs with MyGov come tax time - if you’re managing a business or self-employed consider investing in using services like XERO or HNRY that will streamline your accounting. Always keep a paper trail of your spending, we love using the signature black boxes our AOL stationery comes in to store receipts out of the sun to avoid fading and also provides easy access come tax time - just pop a label on the outside with the corresponding year.
Know Your Contributions
If you’re self employed or run a business make sure you’re aware of both your required tax and superannuation contributions, starting now to put this money aside is ALWAYS better than putting it off until tax time and receiving a tax bill, & in terms of superannuation if you’re not putting money aside for future you to retire, then who is? This is just as important as your tax - put this money aside and make voluntary contributions throughout the year.
Create Healthy Financial Goals
Your financial goals are just as important as your personal and professional ones. Reflect on your money habits over the past 12 months, what were you proud of and what needs refining to get you achieving your financial goals and feeling motivated. Your financial goal could be as small as creating better savings habits like making your morning coffee at home rather than buying one each day, or identifying a big savings goal and putting together a plan of action to achieve it.
Know Your Budget
This is one of the most important financial habits to have - start a budget! If you own an AOL diary, there’s budgeting pages in the front for you to document and manage your budget. A budget can help you manage your finances and identify if you’re living above your means or potentially even being too restrictive. Make sure you allocate money to emergencies, savings, bills as well as having disposable income. A budget shouldn’t be restrictive, it’s a tool for you to understand your finances and balance your life accordingly. We recently spoke to Victoria Harris from The Curve for some insight into how we should be managing our finances, read the piece HERE.