Enter FY26 with clarity & purpose!

As we tick over to a new financial year, it's the perfect time to reassess your financial situation and gear up for the financial year ahead. Whether you’re an experienced investor or new to managing your finances, this transition offers a chance to reflect, plan, and set yourself up for success. Here’s your guide to navigating the end of one financial year (EOFY) and kicking off the new one on the right foot.

Before diving into new plans, take a moment to reflect on your financial performance over the last year. Review your income, expenses, and savings. Did you stick to your budget, or did you find yourself overspending in certain areas? Analyse your financial statements and bank statements to identify patterns and areas for improvement. Understanding your spending habits is crucial for making informed decisions moving forward.

Set SMART Financial Goals

With a clear picture of your past, it’s time to look ahead. Set SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of vague aspirations like “I want to save more,” craft precise objectives. For example, “I will save $37,500 for a home deposit by June 30 next year.” This clarity will help you stay motivated and focused throughout the year.

Budget Wisely

A well-structured budget is your financial blueprint for the coming year. Begin by updating your budget to align with your new goals. Ensure it includes all essential expenses, savings targets, and discretionary spending. Consider utilising the Australian government’s budgeting tools or apps to help manage your finances effectively. A balanced approach, like the 50/30/20 rule, can guide your allocation: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

Prepare for Tax Season

With the EOFY comes tax season. Gather all necessary documents, including payment summaries, receipts for deductions, and any investment statements. Work closely with your accountant to minimise tax payable where possible. Work on strategies to set yourself for the upcoming financial year and be sure to let your accountant know if you have plans to purchase a property in the next 12 months.

Build or Enhance Your Emergency Fund

An emergency fund is a crucial financial safety net, protecting you against unexpected expenses like medical bills or car repairs. If you haven’t established one yet, aim for three to six months’ worth of living expenses in an offset account or a high-interest savings account if you do not have a mortgage. This fund provides peace of mind and financial stability.

Educate Yourself Continuously

The world of finance is constantly evolving, and staying informed is crucial. Dedicate time to learning about personal finance through Australian books, podcasts, or online courses. Resources like ASIC’s MoneySmart website can provide valuable information. This knowledge will empower you to make better financial decisions and adapt to changing market conditions.

Review Insurance Policies

As the new financial year begins, it’s a good time to review your insurance coverage. Review your health, car, home, and life insurance policies to ensure they provide adequate protection. Changes in your life circumstances—such as a new job, marriage, or home purchase—may necessitate adjustments to your coverage. Shopping around for better rates or policies can also lead to significant savings. Seek advice from a financial planner if advice is required.

Review your Lending

With a couple of rate reductions so far already this year, the new financial year marks a perfect time to review your existing lending with a broker. You want to ensure that you are receiving a competitive interest rate and that your loan is still meeting your needs. Don’t get stuck paying a loyalty tax to your bank! Work with your broker to put debt reduction strategies in place to build equity and reduce any bad debts.

As you transition from one financial year to the next, remember that preparation and reflection are key to achieving your financial goals. By reviewing your past, setting clear objectives, and creating a solid plan, you’ll position yourself for success. Embrace this new beginning with enthusiasm and a commitment to making informed financial choices. Here’s to a prosperous financial year ahead!