End of Financial Year Tips

As we approach the end of financial year thoughts turn toward tax returns, deductions and getting your paperwork in order. While you’re in the money mindset why not also take time to review some of your other financial issues. Here are some quick tips you may want to consider to get you set up for the next year and beyond.

Review Your Goals

A wise person once said that “a dream without a goal is merely a wish”. Wise indeed – and it applies as much to your financial life as anything else. Having specific and quantified goals with a projected timeframe is essential to drive you into taking action and staying committed. They can be short term, such as a new home theatre system, right up to long term goals, such as a holiday home or a round the world trip. Talk to your spouse and figure out what it is you desire and pin it down to specifics.

Plan To Succeed

Imagine if you employed a builder to build your home and he turned up on the first day of work without a blueprint and told you he was just going to wing it from day to day. Who knows what you would end up with? While in some areas of life it is great to be spontaneous, your finances are not one of them. Make sure you plan and get proper advice to help you do it.

Keep A Lid On Your Credit

Credit used wisely is a great financial tool, but far too many people allow it to take control of their financial life, rather than it being the other way around. Make it a goal for the new financial year to take back the initiative. Look to your credit cards first and set yourself a reasonable monthly amount to really make inroads into the one with the highest interest. Once the momentum has started you will be motivated to knock over other debts and tame the credit beast.

Spruce Up Your Super

End of financial year is always a great time to make sure you are maximising your super opportunities. If you are self-employed, see if you can squirrel away extra money to contribute increasing your tax deductions and boosting your retirement savings. If you are an employee, maybe it’s time to talk to your employer about salary sacrificing into super to potentially take advantage of the concessional tax rates and help enhance your future retirement lifestyle.

Tax Benefits On Your Insurance Too

Protecting yourself and your loved ones from the threat of premature death or loss of income through sickness or accident is an essential part of your financial planning, but are there opportunities to do it more tax effectively? With your income protection, for example, if you are eligible, you can pre-pay next year’s premium before the end of the tax year to gain a bigger tax deduction on this year’s income. You can also talk to your adviser about the possibilities of shifting some of your insurances into your super to potentially gain deductibility on your premiums.

Earmark Your Tax Refund

If you are expecting a refund from your tax return, it is easy to splurge it on a luxury or treat that you don’t really need. Why not dedicate it to something more worthwhile that will help advance your financial health, such as paying down debt, boosting your super or applying it toward one of your savings or investment goals. Making the decision before you get the money will help ensure it is diverted the right way and not squandered.