Preparing your finances for the New Year

Preparing your finances for the New Year

Managing your finances is a responsibility you should be on top of all year round.

However, the New Year is the perfect time to review and evaluate, and pay close attention to your investments and spending to enable you to enter the New Year on top of your finances.

Re balance your portfolio

The New Year is an ideal time to sit down and review your investments. Without paying diligent attention to your portfolio, you may not notice that some assets aren’t performing as well as you’d expect, or they have stopped performing in the way they once did. Revisiting and reevaluating the dividends your assets are providing will allow you to assess whether to keep investing in them or to cut your losses as you enter into the New Year.

Set financial goals

Ideally, you should set financial goals as the new financial year approaches, and reassess these bi-annually at the end of the year. Now is the perfect time to revise long-term goals and develop some new short-term goals. Seasonal goals might include establishing how well you want your holiday rental to perform, or developing renovation plans to begin after the holiday season to bring in more revenue for the next holiday season.

Research tax exemptions on your holiday spending

The New Year is often a period of big spending, dining out, purchasing presents, taking time off and going on holidays all add up. You may not be aware of the tax exemptions or claims you can make on the money you spend during this period. It is advisable to keep receipts from this time frame somewhere safe and speak to your financial advisor about deductions you are entitled to.

Reassess your mortgage and insurance

When your insurance is up for renewal, compare against other products and companies to ensure you are getting the best deal. In the same token, shopping around for a better deal on your mortgage could potentially save you thousands over the lifetime of your home loan.