New Financial Year – Make things happen
Well like we said in our last post, we’ve just been through accountant’s New Year and clicked over to another financial year on 1st July just gone. We’re going through some tough economic times at the moment but some people receive their pay review or annual salary increase from 1 July so if you were lucky enough to receive one, the beginning of the new financial year is a great time to take stock of your finances. We’ve decided to do a quick update on one of our old favourites so If you’re struggling for some inspiration we thought we’d take the opportunity to remind you about our top 5 new financial year’s resolutions. Count ‘em off guys – they are:
Income protection insurance
If you were fortunate enough to get a pay rise from 1 July and haven’t got your income insured, what are you waiting for? (Premiums are tax deductible too)!
SAVE
If you’ve already got income protection, why not open a high interest bearing account and get your pay rise redirected into it and put away a couple of grand as the start of the ‘new financial you’ and your cushion against a financial rainy day – after a few weeks you won’t even notice not having that money and then BAM you have thousands saved.
Savings Plan and Investments
Now if you’ve got the first two sorted out, why not consider starting off an investment portfolio. This can be achieved for as little as $1,000 up front and $100 per month on an ongoing basis. Think about you’re investments like a debt or a commitment and pay into your investments before you pay yourself.
HELP Debt
If you’ve already got 1 to 3 covered buy yourself a pint tonight to celebrate and while you’re drinking it, think about making a voluntary repayment off your HELP debt. From 1 January 2012, a voluntary repayment off your HELP liability of $500 or more earns you a 5% bonus repayment (down from the previous 10%) Returns of 5%? – still not bad!
Superannuation Government Co-contribution
If you get to step 5 having got 1 to 4 already covered you’re at the top of the iGenWealth class! If you have adjusted taxable income lower than $61,920 and make an eligible personal superannuation contribution to a complying fund before June 30 you may be eligible for an additional super contribution paid for by the government. Yep, that’s money from Julia Gillard for nothing – isn’t that just a beautiful thing?!
Getting ahead financially and putting yourself on the road to financial freedom doesn’t require an IQ that’s off the charts or a wide knowledge of financial markets. All you need is a small amount of discipline, an equal amount of organisation and some time to let your money grow, the more time the better. So there you have it, iGenWealth’s top 5 new financial year’s resolutions.
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By Dean Johnson
