This is not another end of financial year list

This is not another end of financial year list

Well, not that kind anyway. This is a list of five things you could consider doing to start the new financial year with a solid feeling of control over your finances (if you’re not there already).

To start the new financial year with a bang, you could:

1. 1.       Review your mortgage

You’ve heard it a million times, but have you reviewed your mortgage lately? If your interest rate is more than 0.5 per cent above the official cash rate you can always get better. You can save ridiculous amounts (technical term for a lot of money) over the life of the loan if you shop around and put in just a little bit of time. Usually, two visits to a mortgage broker and a bit of time before-hand gathering your vital stats will see you in an improved position.

1. 2.       Review your superannuation investment options

Set and forget; that’s the usual super investment strategy of us mortals, but it doesn’t have to be. Super funds, by law, are required to provide fund performance averages over 1, 2 and 5 years, so it’s easy to see – at a glance – which investment options might be good for you. All it takes is a phone call to your fund manager to switch investment options.

1. 3.       Invest first, save next and spend last

We talked about this here a while ago and it still – and always will – hold true. Pay your investments first, your savings next and spend what you have left. Even those on tight budgets can put this into action if you start small; a dollar a day?

1. 4.       Review major cash drains and take action

Seriously, read on if the credit card statement makes you cringe or want to hide in the wardrobe. It’s fixable. Consider those events such as school holidays or the coming of winter when everyone needs new clothes and shoes and set up a bank account to channel a weekly or fortnightly deposit into. It’s so simple – yet effective at eliminating unnecessary credit card debt – it could incite a nose bleed from the sheer joy of actually seeing it work.

1. 5.       Automate, automate, automate

We’re not talking robotics here but automating all of the above. Automate the payment of the mortgage (plus a little bit more) to come straight out your salary. Automate your investment and savings plans by setting up direct debits for when your salary hits. Automate (i.e. put time aside in your diary and stick to it) a day or time each month, fortnight or week that your spend tending to these matters and you will soon reap the benefits of being in control.

So, get savvy and act. It feels good to be the driver. And doing something towards improving your financial future will always be better than procrastinating another month of surplus cash away.

Do you have plans to see in the next financial year in better financial health?