Having a healthy financial year can feel challenging, but it’s completely achievable with the right habits. A lot can change in just 365 days—your job, income, family situation, or even your financial goals. You may have changed jobs, received a raise, gotten married or divorced, or had a child. Any of these life events can […]
Having a healthy financial year can feel challenging, but it’s completely achievable with the right habits. A lot can change in just 365 days—your job, income, family situation, or even your financial goals. You may have changed jobs, received a raise, gotten married or divorced, or had a child. Any of these life events can affect your finances in meaningful ways.
That’s why a yearly financial checkup is so important. It keeps your plans aligned with your goals and ensures nothing slips through the cracks. The best part? It doesn’t need to take hours. Start with a quick review—15 to 30 minutes is enough. Then, you can schedule time for follow-up tasks later.
Step 1: Review Your Assets and Liabilities
Begin by calculating the total value of your assets. This includes your super, savings, and SMSM investments. Then, list your liabilities, such as your home loan, credit cards, or car loan.
Ask yourself:
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Do I know how to access all of my accounts?
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Do I have all login credentials or passwords?
Once you’ve collected this information, figure out your net worth (assets minus liabilities). Ideally, your net worth should be increasing. If it’s not, explore why. It might be due to a mortgage, which is a long-term investment. But if your debt is growing for less productive reasons, it may be time to make changes.
Step 2: Account for Major Life Changes
Think about the major changes that happened this past year. For example, did you get a raise? You might consider increasing your super contributions or starting a new investment. If you had a child, it may be time to review your insurance or start saving for education.
Also, check your beneficiary designations. Make sure they reflect your current relationships and family needs.
Step 3: Rebalance Your Portfolio
Over time, your investment allocations can shift. Market fluctuations may cause your portfolio to become unbalanced. Rebalancing helps you stay aligned with your financial goals and risk tolerance.
If one asset class has grown too large, sell a portion and reallocate it to another area. This will reduce risk and keep your investments in line with your long-term plan.
Step 4: Revisit Your Budget
Your budget is the backbone of your financial health. Review your income and spending to make sure they align with your goals. If you don’t have a budget, create one now. It doesn’t need to track every cent—just focus on your key expenses.
Budgeting apps can help you get started and stay organized throughout the year.
Step 5: Plan and Take Action
Now that you’ve done your review, write down your next steps. Creating a task list helps you stay accountable. Even small changes can lead to a more financially healthy year.
