The end of the year often feels like a rush towards the holidays, but the weeks leading up to December are the perfect time for a quick, essential financial clean-up. A few hours spent reviewing your details now can save you money and stress when the new financial year rolls around.
This simple checklist will guide you through the often-forgotten administrative tasks that ensure your money is working as efficiently as possible.
1. Check Your Budget and Find the ‘Leaks’
Before you spend on gifts, take a moment to look back at the past few months of spending.
- Review Subscriptions: Go through your bank statements and look for services you’re paying for but not using. Think streaming services, gym memberships, or old app subscriptions. If you don’t use it, cancel it.
- Analyse Variable Costs: Look at your utilities and phone plans. Have your fixed-rate deals expired? Could you save money by switching providers or plans? Many discounts offered throughout the year are only available to new customers, so it’s smart to compare.
- Update Your Budget: Adjust your budget for the new year based on actual spending. If you consistently spend more on food than you allocate, it’s time to adjust the numbers to make your budget realistic.
2. Review Your Insurance Policies
Insurance is one of those things we set and forget, but prices and circumstances change, meaning you could be paying too much or, worse, be under-insured. It’s important to regularly review not just your general insurance, but also your life insurance, as life cover is quite different and often needs a more personalised approach.
- Update Valuation: If you have home and contents insurance, check if the estimated replacement cost of your belongings is still accurate. Have you bought any new, expensive items this year?
- Compare Premiums: Contact your insurer to see if they can offer a better deal or use a comparison site to check the cost of equivalent cover elsewhere. Loyalty sometimes costs you money, so don’t be afraid to switch.
- Check Excess: Review your excess amount. Raising it slightly can lower your premium, but ensure the excess is still an amount you could comfortably pay from your buffer fund if you needed to make a claim.
- Check Policy Details and Exclusions: For all types of insurance, including life, carefully review the policy details and exclusions; what’s covered, what’s not, and any changes in terms since your last review. This helps avoid nasty surprises when you need to claim.
- Review Life Insurance: Unlike general insurance, life insurance involves more complex considerations, such as your current debts, income, dependants, pre-existing conditions and future goals. For a thorough review, it’s recommended to speak to a qualified financial adviser who can assess your needs and ensure your cover remains suitable, especially after major life events like marriage, having children, or taking on new financial responsibilities.
3. Optimise Your Superannuation
Your retirement savings are important, and the end of the calendar year is a great time to check in on them.
- Check Your Contributions: Are you on track to meet your retirement goals? While the tax contribution limits apply to the financial year (ending June 30th), getting an early start on boosting your super is always wise.
- Review Your Fees: Access your super fund portal and check the total fees you’re paying. Even a small difference in fees can have a massive impact over decades.
- Consolidate (If Necessary): Do you have any forgotten super accounts from old jobs? While a full review may take longer, it’s worth checking the myGov website to see if you can roll multiple accounts into one, reducing fees and paperwork.
4. Tidy Up Paperwork and Files
A tidy filing system ensures you’re ready for the next tax season and any administrative needs.
- File Digital Receipts: Sort and save all major receipts for the year, especially those related to work expenses, health, and investment activity. Digital filing is best for security and searchability.
- Verify Personal Details: Check that your contact details, beneficiaries, and emergency contacts are up to date with your bank, super fund, and insurer. A simple address change could impact your policy notices.
- Review Estate Documents: If you have a Will, check the list of assets and beneficiaries to ensure they are still correct, particularly if you have experienced any major life changes this year (like marriage, divorce, or the birth of a child).
Taking the time to complete this checklist means you can enjoy the holiday season knowing your financial house is in perfect order for the year ahead. You’ll enter the new year with clarity, efficiency, and potentially more money in your pocket. As always, reach out to us if you have any questions.