Facebook pixel skip to Main Content

10 Financial Planning Tips for the New Financial Year

August 17, 2020

If you’ve made some lofty plans for your money goals this financial year, you’ll need to make wise financial decisions throughout the next 12-months, to give yourself the best chance of reaching your goals.

Many people want to be wiser with their money – but knowing where to start can be the most difficult part. We’ve put together our Top 10 Financial Planning Tips for the New Financial Year, to help you make better financial decisions.

1. Wait Before You Buy

Impulse buys are tempting. However, if you can wait 24hrs, you’ll be able to make a more informed decision. The sooner you learn the benefits of delayed gratification, the healthier your finances will be.

2. Consistency is Key

Set some healthy finance habits and do what you can to stick to them. Consistency really is your friend, when it comes to making wise financial decisions and reaching your goals. If you get off track, see what you can do to help make it easier to make better decisions next time. Sticking with your plan long term will make a huge difference to your financial situation.

3. Curb Your Credit Habit

If you’re putting everyday expenses like groceries and socks on your credit card – and are unable to pay your credit bill at the end of each month, it’s possible that you’ll still be paying for these items in ten years. While credit cards are convenient and can be a great way to build a good credit rating, it’s vital that the balance is returned to zero, every single month. Set yourself up to make wise financial decisions by always keep track of your cards and limit the amount you carry with you.

4. Remember Your Debit Card

Credit Cards may seem convenient but if not used correctly, they’re a real threat to your financial health. Debit cards are just as handy and take money directly from your bank account, interest free. The rule of thumb here, is that it’s always better to save up before making a purchase. As Thomas Jefferson said, “Never spend your money before you have earned it.”

5. Create a Budget and Spending Plan

One of the most important financial planning tips we can give you is to create a budget. Understanding your income and expenses is paramount to making wise financial decisions. People who have a good understanding of their cash flow make better financial decisions and are more likely to achieve their financial goals. It’s vital that your expenses aren’t exceeding your income. A budget will help you keep an eye on this. Review your income, expenses and debts. Analyse how much (if any) money is left over. You may need to make some spending changes here, to get your budget to where it needs to be, so you can move toward your financial goals.

6. Start With Three Small Changes

It’s amazing how much a daily coffee can cost. Small, manageable, regular changes can make a huge difference to your financial health. Choose three small, manageable changes you can make today, to decrease spending. Track your savings over next four weeks to see just how much difference a few dollars can make!

7. Incoming v Outgoing

Always be sure to spend less than you earn. By keeping track of all your expenses, you’ll always know where your money is going. There are many financial budgeting apps which can help you make wise financial decisions, every day. Once you’re in the habit of spending less than you earn, you’ll be able to start saving, and moving toward your financial goals.

8. Prepare for the Future

Do you know how much money you’ll need to retire? It may seem like a lifetime away, but retirement is on its way! Consider putting away 10-11% of your regular income (Australians receive 9.5% superannuation each pay slip). Calculate your retirement age and take a look at your super balance to see if you’re on track to retire with enough money to enjoy the lifestyle you dream of.

9. Don’t Follow Herd Mentality

It’s easy to fall prey to FOMO (Fear Of Missing Out) which can cause us to make unwise financial decisions that we may later regret. It’s important to analyse all possible outcomes, both positive and negative and then make an informed, wise financial decision before making a large purchase.

10. Automate All Your Finances

It’s much easier to make wise financial decisions with an automatic money management system in place, helping us stick to our plans and avoid mistakes. Automation takes away the need for being self-disciplined and enables wise financial decisions to happen by default. Make use of your bank’s automated payment and account transfer tools to begin automating your finances.

For more financial planning tips or for retirement advice, call us on (03) 8782 3745 or book your discovery call today!

Previous | Next

Can I Access My Superannuation Early Due to Financial Hardship?
Centrelink’s Gifting Rules


Traveling During Retirement

Will I Still Be Able to Take Regular Holidays in Retirement?

Are you concerned about maintaining your travel habits and enjoying regular holidays as you approach…

Read more
Why Choose Aurora Wealth Retirement And Personal Financial Planner?

What Happens If I Outlive My Retirement Savings?

Retirement is a time many look forward to, but the thought of running out of…

Read more
Strategies For Maximising Age Pension While Working Part-Time

Is it ok to work part-time in retirement, and will it affect my age pension?

Yes, it is perfectly okay to work part-time in your retirement years, and the impact…

Read more

What Is the Best Way to Fund My Retirement Income?

Options for couples with an age gap If there is a bit of an age…

Read more

Micheal is a financial expert with over a decade of experience in the field. Growing up in countryside Victoria, and later moving to Melbourne to pursue higher education, Micheal has since then been working in the financial industry for over 13 years with much of his career spent as a financial advisor. He holds the prestigious Certified Financial Planner designation and is a registered member of the Financial Planning Association of Australia. Micheal is also a dedicated family man and proud father of 3 amazing children. When he isn’t working or spending time with his family, he enjoys outdoor activities such as hiking and camping.

Back To Top