With the start of the financial year, there is no better time than now to set financial year resolutions for 2011. So get a pen and start goal setting for the next financial year, with help from our finance expert, Anthony Bell.
One of the most important things is to get your finances in order, and what better way to start than to get your 2010 tax return lodged and out of the way.
So while it is still fresh in your mind, collate all of your income sources and deduction items and get them to your accountant ASAP. What is even better is if you are eligible for a refund, get it into your savings account and earning interest rather than keeping it in the ATO’s!
Income items could relate to:
- salary and wages
- interest income
- dividend income
- rental income
Some deductions to consider are:
- motor vehicle-related
- study and further education costs related to your income generation
- bank fees
- interest on deductible loans
- running costs for your investment property
- income protection insurance
Read Anthony Bell’s previous article; Three key strategies to maximise your tax return.
2. Set a budget
The next thing that you can do as part of your new year’s resolution is to set a budget. Establish how much money is coming in, how much money you need to save and finally how much money you need to spend on necessary items. Once you have done this, commit yourself to stick to your budget!
When setting a budget many people say to themselves, “Whatever is left over I will save.” 9 times out of 10 there is no money left over to save.
Treat your savings like an expense just like your rent or mortgage payments, this way you will save some money every month rather than spending every dollar you have. What is even better is to put it into another high interest bearing account, making it harder to access and reducing the temptation to spend it on unnecessary things.
Read Anthony Bell’s previous article, How To Stick To A Pain-Free Budget.
3. Get your will in order
A final new year’s resolution that you should stick to is to review your will. If you don’t have one, it is now time to get one in order. Nowadays, there is no excuse not to have a will.
If you can afford to get your lawyer to draft one up for you then get that arranged immediately. Otherwise you could consider going to Australia Post and getting a will kit. The best course of action depends on your personal circumstances, so a conversation with your lawyer might need to be considered.
By getting the above items in order, 2011 will be the best year yet and will also set up some great habits to take you through to future years.