How to keep your bank accounts healthy

The start of a new year can often be stressful from a financial standpoint. It's a time for many people to look back on the previous 12 months, size up their income and their expenses and make important decisions about how to manage money better for the following year.

Have you started this process? If not, the following are a few tips that could help to prepare yourself and your bank accounts and help you reach your financial goals.

Preparing for major financial milestones?

Most people take care of their basic expenses - housing, utilities, groceries and so on. But to really plan ahead, you may have to go beyond just looking at those. You may decide to map out your major financial expenses you may have throughout the year and build your plan around those¹.

Are you planning to get married, have a child or go through a major career transition? Are you considering a big financial decision such as purchasing a home or car? Any of the above could constitute an expense that's not part of your usual monthly budget. Consider thinking about these big objectives first to help ensure you don't fall behind financially this year.

Setting your goals for the year ahead

Many people aim to do more than just break even and try to come out ahead. Consider beginning the new year with a savings goal in mind. How much of each paycheck can you afford to stash away?

If you have this objective in mind, you can keep an eye on your expenses and be mindful of how your results are aligning with your plans set at the start of the year². If you keep good records, it may be easier to analyse your strategy and adjust as needed.

Getting some key insights on budgeting

Budgeting isn't always easy. You may have a lot of elements to consider - including your monthly budget, your annual financial goals and your long-term outlook. For help with balancing all these priorities, consider reaching out to some financial planning experts.

Source:

1. ASIC's MoneySmart

2. Bankrate