CA ANZ gives financial fitness tips for New Year’s resolution season

“Whatever your financial situation, we have four practical steps for you to take.”

First, CA ANZ urged Australians to review their debts, noting that Australia had the second-highest level of household debt globally, according to an analysis by Finder.

“While some debt is unavoidable, we recommend paying down what you can, or exploring refinancing options to get a better rate,” Franks said.

Second, the industry body encouraged Australians to do a financial spring clean, nipping inactive subscriptions in the bud and shopping around for better deals on utilities and insurance for a fresh financial start to the year.

“Technology has made it so easy to spend money that sometimes we don’t spend consciously,” Franks said.

“We recommend reviewing all your spending for a month, line by line. Check your subscriptions and streaming services and see if you’ve used them in the past month. Make sure you also shop around for the best price on your utilities and insurance.

Third, while goal-setting motivation remained high, CA ANZ recommended households commit to a savings target and set up systems to ensure they hit their goals.

“To avoid this, setting up a direct debit of a manageable amount (typically 10-15% of your net income) into a high-interest account on payday can help,” Franks said.

“If you can’t see it, you can’t spend it. Automating this process makes your life easier now and in the long run.”

Last but not least, CA ANZ urged Australians to seek advice from their chartered accountant to stay on top of all the latest regulatory changes and put their best financial foot forward for the new year.

“They will be across the latest changes to tax settings or new regulations and can help you manage your cash flow, ensuring you are a step ahead financially,” Franks said.