How to achieve your financial New Year’s Resolutions

Setting New Year’s resolutions is a common practice for many people over the world, with some people wanting to start going to the gym and others wanting to pick up a new hobby. The new year is a time filled with lots of hope and aspirations, so why not consider some SMART financial goals that can set you up on the right track for your future.


  1. Update your savings targets.

With the new year already on its way, it’s a great time to take some time to review your personal savings goals. Whether you want to save up for a new phone, or you are looking to purchase a new car or house, efficient and effective savings goals will help you achieve those targets. It’s important to distinguish needs from wants and consider the utility that these targets will bring back to you.

Some simple tricks that can help you reach your new savings goals faster can include tracking your spending. Whether you decide to write your inflows and outflows out manually or use an app, logging your expenses can be a great way to visualize where your funds go. Additionally, it can help you identify areas where you can minimize expenses, such as cancelling unused subscriptions. Another handy trick is to use an auto-deposit tool via internet banking or an app to automatically save a set amount, this is a great trick to assist you save if you find yourself often busy.


  1. Review and update your risk profile.

Understanding your personal level of risk when it comes to your savings and making investments is very important and can often change depending on your stage of life. Young investors generally have the highest tolerance towards high risk as they have more time to ride out fluctuations in the market, whereas people who are in their retirement may consider more a defensive approach to their risk profile.

It is important to take the time to understand your stage of life and your current goals and needs to determine your appropriate risk profile.


  1. Check if your portfolio is in line with your risk profile.

Following on from reviewing your risk profile, ensuring that your portfolio is in line with your risk profile is the next logical step when it comes to implementing any new changes you may have made. To review your portfolio, you will need to understand two key things, the first being your current asset allocation within your portfolio and the second being your updated risk profile. Once you know these two things, it’s time to compare the figures. If you notice that you have an even split of defensive assets and growth assets, however you’re a high-risk investor wanting an 80%G/20%D split, this is a great way to show you that you may need to purchase some more growth assets, like ETFs or managed funds, and sell a portion of your defensive assets like bonds or bank bills.


  1. Review your insurances.

Whilst your insurances may not be on the forefront of your mind, it’s a good idea to ensure that your insurances are in line with your current situation.

Being over insured could mean paying excessive fees for insurance covers that go beyond your needs. You could be paying around $23,000 in insurance fees annually when you only need be paying $8,000 for necessary cover. That’s a total of $15,000 a year that could be saved. To help you understand your needs and appropriate insurance covers on offer, speaking to a financial advice could be beneficial. At EPG Wealth, we don’t take commissions on insurances, so advice provided relating to your insurances will be unbiased and tailored to your needs.

When reviewing your insurances, it’s important to take the time to read your Product Disclosure Statement (PDS), as this document outlines what exactly your insurance covers and can help you identify if there are any gaps in your insurance that don’t cover your expectations. It’s also important to check if your insurance has an expiry date and if it’s the case, setting a reminder for when to renew it can be beneficial.

Reviewing your insurances is also useful if you are looking to compare different insurance providers and reduce the cost of your insurance premiums. To learn more on how lower those costs, click here.


New Year’s resolutions don’t always have to be difficult or unattainable. If you would like tailored, transparent, commission-free financial advice regarding your insurance, super or current investment strategy, please click here to organise a complimentary 20-minute meeting with an EPG Wealth adviser.

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