As the year draws to a close and you start to develop your goals for the new year, it’s also a good idea to reflect on your finances for the past year. You could even come up with a few financial new year’s resolutions to work towards.
Reflect on the year that was
How much did you save? How much did you spend? What do you want to achieve, financially, in the new year? These are all good questions to ask yourself. It’s important to reflect on your finances for the past year as this will help you identify areas you would like to improve on for the new year.
Set savings goals
After you’ve reflected on the past year and you’re ready to start planning for the next, setting clear savings goals can help you stay on track with your finances. You might not necessarily have something specific in mind to save for, but it’s always good to have an emergency fund of savings put aside in case you need it.
Check in on your debts
Sometimes as you progress through the year, your debts can continue to accumulate and become neglected. To keep on top of this, bring your debts to the forefront of your mind and set goals targeted at paying down your debts.
Refine, review and redo your budget
Reflecting on the past year is also a great time to review your budget. A good idea is to completely dissect your budget so you can see where you did and didn’t stick to it. Once you’ve developed a better idea of how you can redo your budget for the new year, get into planning.
Get set for tax time sooner rather than later
Everyone knows how quickly the financial year can roll over to the next one, so save yourself some trouble in the new year by preparing for tax time early. Keep track of any expenses you can claim back on your tax return and make note of them when you spend the money. You’ll save yourself a lot of time riffling through your bank statements.
Check in on your goals regularly
There can be times when we might set new year’s resolutions but don’t follow through on them. To help prevent this from happening, try to check in on your goals at various points throughout the year.
What next?
Now you have a few ideas of financial new year’s resolutions to consider, start thinking about your financial goals and develop a plan you can work towards in the new year.
General Advice Warning: This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information provided. In particular, you should seek independent financial advice.