The start of a new year is always a good time to review your finances and put some measures in place for the future. To help you reset, and form some positive habits for this year, we’ve draw up a list of resolutions to get you thinking.

Resolution 1: Keep your eye on the prize

The day to day is so all-consuming, isn’t it? It’s easy to find yourself on a treadmill that keeps you running flat out, but doesn’t get you any closer to the big goals you want to achieve in the years ahead.

So, if you want 2024 to be different, use the beginning of the year to think about your dreams.

If you want to make a career change, identify the course you might want to take to improve your skills in that area. If you want to get the children into a private school in a few years’ time, talk to your adviser about the best ways to save for those fees.

With a timeline and a plan of action in place, big goals can become less daunting, and as you see progress, you’ll be motivated to keep working towards reaching your objective.

Resolution 2: Get financially naked

For some people, talking about money and investments and spending and savings habits, feels a bit like getting naked. Maybe that’s why so many of us are reluctant to peel back all the layers of our finances and have open and honest chats with our partners (or our advisers) about where the dollars go.

But if you can do it, it can be quite liberating.

Knowing exactly how the money flows in and flows out, is the first step to spotting the leaks and fixing them.

It’s also a good way to identify the emotions that are often tied to money. How we spend our money can be linked to our personalities, our identity and our priorities. Having a mutual understanding of ‘the why’ that drives your spending habits is a great place to start when you’re trying to tighten up your budget, but still leaving enough room to feel comfortable with it.

Resolution 3: Reset your savings goals

How did your savings goals go for 2023? With inflation running wild for most of the year, you may have seen your plans compromised in some way. But that doesn’t mean you have to give up completely.

As you reset your savings goal for the year ahead, try to be realistic. Look closely at your essential expenses and honestly at lifestyle costs that you can cut back on (often dining, dressing, gift giving and pampering can all easily be toned down).

Set yourself an achievable amount to put aside fortnightly or monthly. This way you’re more likely to stick to it and it can be fun to find economical alternatives to extraneous expenses.

Resolution 4: Create separate accounts

Have your pay automatically deposited into separate accounts for savings, fun expenses and fixed expenses. This will ensure you meet your commitments and keep a tab on how much you have to play with. It will also eliminate worrying concerns about having enough in your account to cover the essentials.

Resolution 5: Define your legacy

The Christmas and New year break are a time when friends and family gather and we all take time to appreciate what we have. It’s also a time to think about the future.

How will your children and grandchildren fare in the years ahead. Is there something you’d like to do to help them financially? Is your will up to date? Who else would you like to support through charity, and is there a more structured way to give? Often a philanthropic structure, like a public ancillary fund, is a great way to bring the family closer together as everyone involved with setting goals and identifying causes they want to support.

Resolution 6: Find a better interest rate

The start of the year is a good time to go shopping for a better interest rate on your mortgage. This can be as simple as making a direct approach to your existing lender. After all, if you don’t ask, you’ll never know. Once you have a better rate, keeping your payments the same or higher will mean that you can be in a position to pay your debt down and anticipate future increases in interest rates.

Resolution 7: Perform a Superannuation health check

Make time to look closely at how your super is invested, keeping an eye on how hard it is working for you. Are you maximising tax-deductible contributions to your super? If not, start the year by finding out how much you can afford to contribute (with guidance from your financial adviser). Several factors can affect this, including how far out you are from retirement.

If you think your super could be doing more, talk to your financial adviser.

Resolution 8: Review your credit cards

While cards are an effective way to earn points, having too many can make it difficult to keep track of spending. Pick the one that not only rewards you best, but also gives you the best rate, and consider consolidating the others into it.

Resolution 9: Review your insurance policies

Are you paying for cover you don’t need or alternatively are you underinsured? If you get sick or can’t work, your investments, savings and debt repayment will all suffer. Look closely at your insurance policies and make sure you’re appropriately covered.

Perhaps the wisest resolution of all is simply to be better informed. Commit to learning more about managing your money and being actively involved in your finances in 2024.

Usually, the best and first place to start is to seek appropriate advice.

If you would like more information please call 1300 ELSTON or contact us.