The end of the financial year is a chance to draw a line in the sand and take stock.

Whether your goals and circumstances have changed, or you just want a plan for the next 12 months, it’s an opportunity to have a fresh look at your finances.

Here’s how to get started. 

1. Take stock.

Before you start thinking about future plans it’s worth taking a moment to think about your current financial position. The Coronavirus pandemic has affected everyone’s plans, and your goals may be very different to what they were at the start of the year. But that doesn’t mean you can’t respond to the uncertainty.

• If you’re thinking about getting your finances in order and trimming unnecessary spending, the new financial year is a great place to start. If you don’t already track your income and spending now is the time to start. There’s a variety of tools available to help you save money, identify expenses, and plan a budget. Whether it’s via an app, a digital spreadsheet, or just a notepad, you may be surprised to see where your money is going.
   
• End of financial year also means tax time, and this is one area where you may have some good news on the horizon. The Australian Taxation Office (ATO) has issued new guidelines for people who have been working from home due to COVID-19. The simplified deductions mean you can potentially claim “80 cents per work hour for all additional running expenses.” This might mean greater deductions than usual (and possibly a larger rebate). You can learn more via the ATO website.

​2. Plan ahead 

What do the next 12 months look like? The reality is no-one really knows, and black swan events like COVID-19 are a reminder of that fact. But despite global uncertainty, there are practical things you can do to help you weather whatever economic storms may lay on the horizon.

• One of the easiest ways to plan ahead is to review your superannuation. Take a moment to consider your superannuation investment options and decide if they’re right for you. And while you’re at it check your insurance coverage to make sure it meets your needs. While most superannuation policies cover death and permanent disability, you may also have salary continuance cover. You can review all the above by logging into your account, or checking in with our Helpline on 1800 682 626. And if you’re looking for more tailored advice our financial planning team is offering remote appointments.
   
• If you’ve been salary sacrificing your super (or have set up a separate savings account with your bank), now might also be a good time to review these arrangements.
   
• If you want a quick snapshot of where your super will be in the years to come don’t forget the Equip Retirement calculator. This can be especially useful if you’ve made an early access claim and want to know what the long-term impact may be.
   
• And finally, don’t forget about the end of financial year deadlines for super contributions and government co-contributions. You can read about those here, and if you’re eligible they’re an easy way to boost your savings.

3. Negotiate a better deal

Given the widespread impact of COVID-19, most financial institutions are willing to negotiate better deals to help customers through this period. In many cases these changes are being fast-tracked, which means you can start benefitting sooner.

• If you have a mortgage this is likely to be your biggest monthly expense, so it’s a good idea to check your progress at least once a year. If your mortgage has a redraw facility you may be able to use this to buffer you through uncertain times. Banks are also offering to freeze repayments due to the COVID-19 pandemic, with deferrals of up to six months available.
   

• Go online and compare interest rates. If your rate is no longer competitive, ring your lender to negotiate a better deal and consider switching loans if they won’t budge. Just beware of any exit fees.
   
• Your home loan is not the only expense worth haggling over. Your electricity, phone, internet and insurance policies can all be renegotiated or moved to other service providers. If you’re no longer driving to work that may be grounds to reduce your car insurance payments.
   
• Consolidating credit cards and other debts can save you substantially. Shop around and you’ll find financial institutions offering interest-free periods for consolidated debts. These offers mean your repayments go directly towards paying down the loan amount (rather than the interest charges).

4. Protect your wealth 

Reaching your life and financial goals is not just about growing your wealth but protecting it.

• It’s important to review your insurance policies annually, both within super and any external policies you may have. Equip members can review their investment options by logging into their accounts. Health cover is another safety net worth reviewing. If you’re not able to utilise all the benefits of your cover due to COVID-19 you may be able to negotiate a reduced rate.
   
• A financial planner can help you optimise both your investments and insurance. They can help you better understand your financial options, and ways to build long term wealth. If you’re approaching the end of your working life they can help you transition to retirement and maintain a steady income, but even someone in the middle of their career can benefit from professional advice about their super.
   

With the 2019-2020 financial year rapidly drawing to a close, now is the time to take stock, adjust your plans, and start planning for the future. For additional help or assistance please call us on 1800 682 626.