How To Start the Financial Year Off Right

Author Carmen Hawker
Posted on 1 July 2019
How To Start the Financial Year Off Right

We’re all busy making lists of goals and setting intentions on January 1, but what about July 1? The start of the new financial year brings with it the perfect opportunity to refocus yourself on your money goals for the twelve months ahead. 

Everyone knows that there are few things more satisfying than making to-do lists, other than actually ticking them off. So we have created this list of five things to tick off together once the clock strikes midnight and heralds in FY1920: ‘Year of Your Finances’. Let’s get started! 

1. Define your goals

All good lists start with a goal. But, here’s the catch: it has to be SMART. It’s not very FY1920 of you to just write down ‘earn more’, ‘spend less’ or ‘don’t order UberEats five times a week’ (we see you, we don’t judge you!). Take a moment to think about what you are actually trying to achieve this year with your finances… 

So, instead of ‘spend less’ – how about making it: ‘spend $2K less in the next year by ordering my groceries online and deleting UberEats from my phone’. Or, perhaps your money goal is to ‘learn more about investing’? But what if you got really specific and made it: ‘complete Verve’s Money & Mindset course before December 2019 by setting a monthly appointment with myself and my bff’, and then adding it straight to iCal? See how different that feels? Now you have defined your goal – write it down. We are 42% more likely to achieve our goals if we *physically* write them down, so bust out those magic markers!

2. Make a plan to bust debt 

If you’ve got debt, now is the time to set up a repayment strategy. Over 1.9 million Australian’s are struggling to repay debt and it’s a leading cause of stress for many. But with focus, support and a plan it is possible to become debt free, forever. The start of the financial year is a perfect time to kick off a plan to bust debt. To build your strategy complete the Debt Buster challenge in the Money & Mindset Program — complete the worksheet and listen to Head Money Coach, Zoe Lamont explain debt busting in this short video.

3. Track your spending

We live in a pretty magical technological age where we can track every cent we spend in a month via a multitude of apps. Having this information all in one place can be pretty illuminating in terms of where we’re spending our hard-earned but, knowledge is power, right? There’s ASIC’s TrackMySPEND, Pocketbook, Money Brilliant, Spendee or you might be able to do it through their banking app. Download the one that best suits your needs and get tracking. Put some time aside during each money date to look through it, notice any trends and make a focus for the month ahead.

4. Get sorted for your taxes earlier

Picture Marie Kondo folding your socks – and now imagine it’s your tax receipts. Make this the year you develop a system for your taxes and watch all the joy rush in! Putting in place a system for keeping your receipts, expenses and relevant tax records now, will make next June a whole lot less stressful for you (and your accountant!) and could result in a bigger tax return.

Start by figuring out what kinds of receipts or records you need to keep. Get yourself a new filing system — go efficient and digital with the ATO’s MyDeductions app or use old school stationery) and keep those bits and pieces all in one place, organised by date and type, ready for your next tax return.

5. Automate personal super contributions

In the same way that your phone bill or your Spotify subscription comes straight out of your bank account every month, so can a contribution to your super. 

The benefits of investing extra in your super (and self) are numerous, plus, it feels really damn good to know that you’re making steps to financially support future you, today. When it comes to personal super contributions – you can make a one off lump sum payment or opt for a recurring transfer and set and forget. Everything you need to know about setting up a personal contribution to your Verve account is here.

We can already see you dreaming about sitting on your Scrooge McDuck-style piles of cash this time next year! Future you thanks you and she’s oh so grateful.