5 resolutions for home buyers this new financial year

5 resolutions for home buyers this new financial year

The first day of the new year is when we make annual resolutions: Eat better. Get fitter. Improve our relationships. Move up the corporate ladder, etc.

But the first of January is not the only time to make meaningful resolutions. As the new financial year rolls around, consider setting financial goals that will help you stay on track and improve your financial life.

1. Make a plan

The new financial year is an opportunity for you to sit down and work out your key financial goals, and how you are going to attain them. Talk to the important people in your life and together, work out what you want financially. Are you looking to buy a house? A car? Save more? Spend less? Record your goals and make a realistic timeline.

Consider breaking the timeline into stages. For instance, if your long-term goal is to buy your first home, this new financial year might be the year to boost your savings.

The more realistic your financial plan, the more likely it is you will realise your goals. Work out your total income, taking your everyday lifestyle and spending habits into consideration. Know that the goals and timelines you set for yourself are achievable.

2. Implement a budget

If you don’t already have a budget, the new financial year is the time to sort one! Your budget is your assessment of expected income and estimated expenses. Ideally, your budget will tie in with your financial goals.

Planning to buy a new home in the next few years? See if there are any expenses you can minimise to save up that deposit. Looking to do some big renovations in the next six months? Increase the amount of savings you set aside each pay to ensure you can afford them. You can use our budget planning tool to get started.

Get your budget sorted this new financial year, so you can reach some of those financial goals sooner.

3. Improve your financial literacy

Did the end of the 2017–18 financial year cause you a headache? Make sure the next EOFY doesn’t make your head spin, by improving your financial literacy. There are dozens of handy tools out there to help you out, and you can start with our blogs. You could also check out the Australian Taxation Office (ATO) and ASIC’s MoneySmart websites for valuable tips and information, or sign up to a free online course.

Give yourself the gift of knowledge. In the case of financial literacy, it literally pays!

4. Boost your super

Consider bumping up your super contributions this financial year. Not only will it mean your retirement savings get a boost, but if you’re a first home buyer you could also be increasing your chances of entering the property market.

The First Home Super Saver Scheme implemented by the federal government last July allows you to make voluntary super contributions of up to $15,000 per year, which you can use to buy your first home. These contributions will be taxed as super rather than at your normal tax rate, which will help you to save. Talk to your tax adviser or the ATO about your eligibility.

5. Seize opportunities!

Whether you’re refinancing your mortgage, getting started on those renovations, or taking advantage of the recent first home buyer grants and concessions to buy your first home – seize the day! And if you need some support to help make those dreams a reality, Smartline is here to assist. Let your Smartline Adviser help you to get your new financial year off to the best possible start.

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.