5 Financial Habits to Review Before the End of the Financial Year
As the end of the financial year approaches in Australia, many people focus primarily on tax returns. However, EOFY can also be a valuable opportunity to review broader financial habits and ensure your financial strategy remains on track.
Rather than viewing the 30th June as just a deadline, it can be helpful to treat it as a financial checkpoint – a time to reflect on the past year and prepare for the year ahead.
Here are five financial habits worth reviewing before the financial year ends.
1. Review your progress toward financial goals
EOFY provides a natural moment to revisit your financial goals and check whether you are progressing as expected.
These goals may include:
- Saving for retirement
- Reducing debt
- Building an investment portfolio
- Saving for a property or major purchase
Taking time to review your progress can help identify whether any adjustments may be required.
2. Review spending and budgeting habits
Understanding how money has been spent over the past year can provide valuable insights.
Reviewing your spending patterns can help identify areas where:
- Spending may have increased
- Savings opportunities exist
- Budget adjustments may be beneficial
Even small improvements in budgeting habits can make a meaningful difference over time.
3. Review investment performance
EOFY can also be a useful time to review how your investments have performed over the past year.
Rather than focusing solely on short-term returns, it can be helpful to consider:
- Whether your portfolio remains diversified
- Whether your investments align with your risk tolerance
- Whether your investment strategy still supports your long-term goals
Regular portfolio reviews help ensure your investments remain aligned with your financial plan.
4. Review protection strategies
Financial protection is an important part of a comprehensive financial plan.
EOFY can be a good opportunity to review whether existing protections remain appropriate, particularly if there have been changes in income, debt levels or family circumstances.
Some individuals may review areas such as life insurance, income protection or other financial safeguards during this time.
5. Organise financial records
Finally, EOFY is an ideal time to ensure important financial records are organised before tax seasons begins.
This may include gathering documents such as:
- Income statements
- Investment reports
- Superannuation summaries
- Receipts for deductible expenses
Organised records can help make tax time significantly smoother.
EOFY as a financial reset
Rather than viewing EOFY as simply a tax deadline, it can be helpful to treat it as an annual opportunity to reset and refocus financial habits.
Regular financial review help ensure that strategies remain aligned with changing goals, circumstances and opportunities.
Small improvements made consistently each year can have a significant impact over the long term.
If you would like to review your financial position before the end of the financial year, speaking with a financial adviser can help provide clarity around your strategy and long-term goals.