Five financial steps for the new year

The start of the year is a good opportunity to take decisive financial steps The new year can often be a trigger point for many people to review their financial plans and strategies for the year ahead and beyond.
It makes sense, although the start of the calendar year is actually the halfway point of the current financial year.
So, in terms of financial strategies, there’s now less than six months left to
implement any that relate specifically to the current tax year.
That creates some degree of urgency, but there’s still a good amount of time left to
focus on shorter-term strategies as well as longer-range ones that can potentially be
maximised by taking advantage of opportunities available before the end of the
current financial year.

1. Review your goals
Setting goals is a key part of the financial planning process, but they can change
over time.
So the first step now is to take a look at your goals and make sure they still stack up.
Do they still make sense, and are they realistic and achievable?
Spending some time now to reassess your short and long-term goals, and make
adjustments to them if required, will ensure you remain on the right financial track.

2. Check your budget and spending
The second step is to recheck your budget and spending, because doing so will help
you to fully understand your ability to achieve your financial goals.
If you don’t use a budgeting method, consider starting one that tracks both your
income and expenses in detail on an ongoing basis.

Identifying where you could reduce expenses will allow you to calculate how much
money you may be able redirect into savings and investments, including into your
superannuation.
Part of this process should also include opportunities to reduce outstanding debts,
prioritising high-interest debts such as credit cards, and taking advantage of loan
products that provide debt payments relief such as mortgage offset accounts.

3. Examine your investments portfolio
One of the key principles of investing is having an investment strategy that’s aligned
to your goals and one that’s well diversified across different types of assets to help
spread risk.
Yet, because assets perform differently over time, either increasing or decreasing in
value depending on market conditions, it’s important to keep an active eye on your
investments portfolio to ensure it remains aligned to your risk profile.
For example, if you have a heavy investment exposure to shares, the strong gains
on global share markets in 2025 may have increased the overall amount of money
you now have invested in shares.
If having a large amount invested in shares is not aligned to your investment
strategy, it may be prudent to consider rebalancing the assets in your portfolio so the
total dollar values in each asset class you’re invested in reflect your preferred
percentage weightings.

4. Consider your superannuation options
Given we’re already over six months into this financial year it’s worth evaluating
whether you’re making the most of all your superannuation options.
The annual limit on concessional contributions, which are only taxed at 15%, is
$30,000. Separately, the annual limit on non-concessional (after-tax) contributions is
$120,000.
Options could include starting a salary sacrifice plan, or increasing an existing one,
taking advantage of unused concessional contributions, and using the proceeds from
non-superannuation asset sales.
Read our recent article, It’s super hump month. Make the most of it, to find our six
ways you could get more money into your superannuation before the end of this
financial year.
5. Prepare you estate
Estate planning is a vital component of good financial planning, however it’s often
put on the back burner or completely overlooked.
Among other things, estate planning should involve having a legally valid will that
specifically documents how you want your assets to be managed and divided
between your nominated beneficiaries after your death.
Dying without a will (intestate) can result in your assets not being distributed to your
surviving family members in the way you would have preferred.
Residential real estate and superannuation, which combined make up more than
three quarters of total household assets, are the largest components of most
financial legacies.
Estate planning can be complex. Consulting a licensed financial adviser to help you
and your intended beneficiaries map out an inheritance framework that also identifies
issues such as potential tax liabilities is a prudent step.