The end of the financial year is the perfect time to tidy up your financial affairs. Aside from the usual last-minute tax and superannuation decisions, let’s consider something a bit different.
Just like a good clean up and declutter at home can leave you feeling quite satisfied, so too can a tidy up of some of your more basic personal finances: bank account maintenance, sensible credit card use and debt management.
Bank account maintenance
- Ask yourself if you really need all those multiple accounts with different banks to unnecessarily complicate your cash management.
- Consider consolidating accounts to simplify your financial affairs and reduce fees.
- Make sure that your bank balance is either earning interest at a competitive rate or is being offset against your home loan.
Sensible credit card use
- Set up an automatic direct debit arrangement with your credit card provider to pay off any outstanding balance monthly before the due date to avoid interest charges.
- Evaluate your credit card rewards to ensure they align with your spending habits and financial goals. If you love travelling then make sure that disciplined servicing of your credit card debt is rewarded with a good frequent flyer points program.
Debt management
- Create a plan to pay off high-interest debts first, such as credit card balances.
- Consider debt consolidation or refinancing options to lower interest rates and streamline payments.
By focusing on these areas, you can improve your financial health and set a strong foundation for the new financial year. Regularly reviewing and tidying up your financial affairs can help you stay organised, avoid unnecessary costs, and work towards achieving your long-term financial goals.
This article was authored by Financial Adviser, Brendan Bate and appeared in the Winter 2024 issue of HLB Mann Judd Perth’s Client Alert. Brendan can be contacted at bbate@hlbwa.com.au or +61 (0)8 9267 3296.
Brendan Bate (ASIC No. 1272327) and HLB Wealth Pty Ltd (ASIC No. 428645) are Authorised Representatives of Paragem Pty Ltd, ABN 16 108 571 875, AFSL 297276
Disclaimer: The information contained in this article has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. Before you make any decision regarding any information, strategies or products mentioned in this article, you should consult your financial adviser to consider whether that is appropriate having regard to your personal objectives, financial situation and needs.