The end of June means the end of the current financial year and the start of a new one. But it’s not a chance to pop some champagne, break out the party hats and throw up some streamers and confetti. The end of this particular year means you’re more likely to be looking at the state of your savings account than be thinking about who to kiss at midnight.
Just as with the end of the calendar year, however, a new financial year means a new beginning, and provides a great opportunity to re-evaluate your past financial choices and set some new goals. If you are indeed unhappy with how your savings account has turned out this year, here’s some resolutions for the new financial year that could turn it around.
I will review my investments
If you’ve got money tied up in any assets, be it shares or property, the new financial year is a good time to make sure they’re still on the right track.
“The end of the financial year is traditionally associated with tax but it’s a good reminder to look at your investments, too,” advised Craig Keary, AMP Capital Head of Retail and Corporate Business.
“Some investments will have tax implications that will need to be addressed while changes to your personal circumstances and the economic landscape may have had an impact on how you’re tracking towards your investment goals.”
So have a look at your original aims and decide if you’re still going to meet them at your current pace. Also consider seeing a financial adviser, who can answer some of those more complicated questions for you and make sure your investments are still beneficial when it comes to tax.
I will live within my means
Perhaps you had a big year with some irresponsible spending. The flipside of that is that you didn’t get to save nearly as much as you would have liked, even though you’re still aiming to save up for a house deposit. Don’t be despondent. Instead, use this year to rectify this.
Have a hard, honest look at your spending and your finances and work out where you can cut the fat. Next, make a monthly budget and try to stick to it. Before you know it, you would have saved enough that you can start to compare term deposits and let those savings accrue for something bigger.
I will get my company finances in order
Self-employment can be tough – being your own boss grants you a lot of freedom, but it also adds a burden on your shoulders in terms of administration and paperwork. It’s probably not surprising that you’ve left some of it until the last minute.
Not this year, however. Make an effort to keep all of your paperwork in one, easy-to-access place. It’ll help when tax season rears its head again, and can also assist you in easily overlooking your company finances. In addition to this, get a petrol log book to record your mileage – you may be able to claim some of the expenses back in tax at the end of the year.