20 money checks to be financially fitter and stronger in 2022

Is your New Year’s resolution to take control of your finances? Do our 20-point checklist and get back on track.

Health and fitness-related new year resolutions may already be looking shaky for some, but there’s still time to put your finances in peak physical condition for the year ahead.

Trimming your spending after the Christmas splurge is just the start. Completing a money checklist during the final two weeks of January can potentially save you thousands of dollars this year alone, and hundreds of thousands of dollars in the future.

Whether it’s a wide-ranging life goal list or a few quick checks of bills and interest rates, you will feel greater confidence and control, money experts say.

Clover Financial founder Phoebe Blamey says writing down goals triples your chance of achieving them.

“Work out what you want, look at how much you need to get there and then work out how long that will take you to achieve and then do research into the best way to get there,” she says.

CONSUME LESS

Blamey says good items to put on your January financial checklist include your energy bills, telecommunications, insurance, superannuation and reviewing your bank accounts.

Phoebe Blamey says people can triple their chance of achieving goals by writing them down. Picture: Supplied

“Start with how much you are spending on takeaway food and coffee – if these unmemorable and often overpriced meals are eating into cashflow and not giving you the results you would like, resolve to take lunch to work a bit more often,” she says.

“If you are saving for something please make sure you are looking at alternatives to bank accounts as the rate you get on a savings account is likely to be under the inflation rate, which means you are not really making money.”

A new study by Compare the Market found one in five Aussies have made a new year resolution to get financially fit in 2022.

It found 61 per cent are planning to splurge less, 25 per cent plan to invest in shares and 9 per cent plan to buy property.

MUSCLE UP

Author and financial adviser Helen Baker says many people who worked more at home during lockdowns saved a lot of money, and could now use those savings wisely to repay debts, make extra super contributions, prepay bills to get extra discounts and consider new investments.

Existing investors may have more wealth than they realise, Baker says.

“Investment markets have skyrocketed: the sharemarket and property prices have soared,” she says.

“What will you do with those gains? Consider whether it’s time to cash out or if you can leverage them to fund new investments. Also, how do those gains impact your tax?”

Financial adviser Helen Baker says many people saved money while working from home during lockdowns. Picture: Supplied

Baker says January is also a good time to plan spending for next Christmas, birthdays and Mother’s Day.

And seek financial advice if you are unsure about your money and goals.

“Quality advice generally pays for itself,” Baker says.

BE FLEXIBLE

Accountant, financial planner at director of dmca advisory Tania Tonkin says now is the time to start fresh and move forward with a clear plan.

“Set aside a specific time and place to focus on setting some short to medium-term financial goals for things you want to achieve within the next two years,” she says.

“I find this is a good time frame because anything beyond that often becomes harder for people to visualise.”

Tonkin suggests setting a realistic spending budget that still allows the lifestyle you want, and using automatic bank transfers to separate everyday spending from savings and investment money.

Financial planner Tania Tonkin suggests setting a realistic budget. Picture: Mark Brake

You are never too young to create a financial bucket list, says NDA Law senior associate Lisa Christo.

“Too many people get to their 30s or 40s and wish that they had been more financially prepared,” she says.

Having written money goals can help you adjust and recover from “hiccups along the way”, Christo says.

MONEY AND HEALTH GO “HAND IN HAND”

Being in control of your finances flows through to your health, and vice versa.

Amelia Pollock says she spent a small fortune on diets over several years before becoming a private client of dietitian Susie Burrell in 2021.

Amelia Pollock sees a link between control over your diet and your money. Picture: Tony Gough

“Seeing a professional who has experience in this area is really beneficial – I spent thousands over the years on diets and never had as much success as with Susie,” she says.

“We were spending up to $800 a week on eating out, and we have turned our spending around.

“It’s worth investing in yourself and not buying into fads … the trick is eating unprocessed foods.”

Pollock says having control over money and health “goes hand-in-hand”, and receiving honest advice from professionals plays an important role.

THE CHECKLIST

1 Spending history: Scan recent online bank statements to check that you spend less than you earn each month.

2Spouse savings: Chat with your partner to work out what they want financially, and whether you’re both on the same page.

3 Superannuation: Spend an hour on your super checking fees, your investment mix and risk tolerance, and whether you’re losing money through multiple funds.

4Power up: Ensure you’re not wasting money on electricity and gas by comparing your costs at energymadeeasy.gov.au.

5 Dial up a discount: Compare phone and internet plans at whistleout. com.au or other comparison websites, and work out if you’re on a good deal.

6Solid shopper: People who shop with a list save money, so use a notebook to help you control supermarket spending.

7 High-interest hurt: Check if you’re paying interest – and how much – on credit cards and other consumer debts. Paying this off should be a priority.

8 Fast-food freeze: Are you addicted to takeaway? Work out what you spend a month on fast food, and how much you can save by eating at home and bringing lunches to work.

9 Home loan: What’s your mortgage interest rate and how does it stack up with other lenders? Use comparison websites to check.

10 Direct debt clean-up: Check you’re not automatically paying for stuff you no longer use, such as gym memberships or technology subscriptions.

11 Car insurance check: Car insurers often charge lower premiums to new customers. Don’t be penalised for your loyalty – contact your insurer and compare.

12 Home protection: Do the same with your home insurer, and check your current level of cover is enough to cover your contents and rebuilding if necessary.

13 Pump out savings: Petrol prices move in cycles in most capitals so check the accc.gov.au website to see how prices are moving so you can try to time purchases.

14 Hello mygov: Spend 10 or 20 minutes exploring my.gov.au to have a look at your super, tax, social security and Medicare details (including Covid vaccination data).

15 Banish bank deposits: Leaving cash in the bank is costing you money after inflation, so find a better place such as mortgage offset accounts or investments.

16 Investment projection: If you own property, shares or other assets, use moneysmart.gov.au’s compound interest calculator to work out how they could grow over a decade or more.

17Treat tax seriously: Start a file – or even a shoebox – for your 2021-22 tax receipts to prevent a June freak-out. Consider the ATO’s app for tracking deductions.

18 Life insurance: What happens to your family’s finances if you die or become disabled? Check what cover is in your super, and whether you need to increase it.

19 Estate planning: Anyone with dependants and assets should have a will and other estate planning documents such as a power of attorney. Don’t tempt fate.

20 Life goal list: Spend an hour writing what you really want to achieve in the decades ahead – it could be travel, education, personal improvement or helping others, and it will help give your life direction.

Originally published as 20 money checks to be financially fitter and stronger in 2022