Your financial well-being calendar

Would you like to get financially fit? Or just want to make sure everything is in order?

Here are some things to think about each month of the year, to get the most out of your year.

January

The start of the new year is a great time to set some goals. Think about the year ahead, and what you’d like to change. You can set some short-term goals to take action on immediately, as well as some to work to over the coming months, year and beyond. Maybe you want to clear your debt, build your savings, or even buy a new (or first) property. Set goals that are manageable and measurable to make them easier to stick to.

February

If you’ve got any debt hanging around on your credit card or other high-interest consumer loans, now might be a good time to focus on getting rid of it. Make it a rule that, if at all possible, you don’t just make the minimum repayment suggested on your cards, to ensure it doesn’t hang around longer than it should. If you’re concerned, you could investigate the possibility of a balance transfer: sometimes banks offer more affordable interest rates to people looking to move credit card debt.

March

March is often a busy month in the property market, but even if you’re not buying or selling, it could be a good chance to check on your mortgage.

Do you have a loan coming up for refixing soon? If your repayments are going to increase, what will that mean for your overall household budget? Is there a chance you could increase your repayments?

When interest rates are higher, you save even more when you make extra payments on your home loan. If you have a revolving credit facility that has proved a bit too ambitious and you’re not making as much of a dent in it as you expected, it could be a good time to think about whether changing to a principal and interest structure may be better for your financial situation and objectives. Your mortgage adviser can offer some pointers and give you guidance for your mortgage health check.

April

Make sure a missed payment or transfer doesn’t put you off your stride. Now’s a great time to check that as much of your personal financial life is as automated as possible. You can set up transfers from your main account on payday to things like savings and investments, and organise direct debits for all your recurring bills. That means you reduce the risk of missing something and ending up with a penalty.

May

How’s your KiwiSaver looking? If you haven’t made an active choice about the sort of fund you’re in, now’s an excellent time to do so. The right fund for you will depend on a lot of things, including your personal circumstances. As financial advisers, we can help you understand what’s available and what’s a good fit for your risk profile, goals and investment philosophy.

June

Now you’ve got your fund right, it’s time to make sure you’re contributing enough.

It’s a good idea to look at what you’re on track to have accumulated by the time you retire, and compare that to what you think you need. Then you can adjust your contributions, if necessary.

In June, it’s also extra important to make sure that, if possible, you’ve contributed at least $1,042.86 before 30 June, so that you qualify for the maximum annual contribution of $521.43 from the Government. Click here to learn more.

July

Aim to build up an emergency fund equal to at least three months’ income – or more, depending on your needs.

August

As the warmer months loom in the distance, this could be a great opportunity to check your spending. Are you sticking to the goals you set at the beginning of the year? Is there anything you could be saving some extra money on?

September

When spring has sprung, it’s a good time to give your insurance a spring clean. Get in touch to talk about whether your insurance policies are still the right fit for you. If you’ve had any major life changes over the year, it could be that your insurance may need a refresher and a regular checkup is always a good idea.

October

Investment plans also need to change with us as we go through life. Take the time before the busy-ness of the holiday break to think about whether yours is still fit for purpose. What are your investing goals? Where are you mostly invested? Are your investments still serving you well and a good fit for your circumstances?

November

As the sometimes-expensive Christmas season approaches, it’s an opportunity to check in on your budget. How much is coming in, what’s going out, and can you squeeze a bit more out into savings or investments?

December

Could this be the year that you practise mindful spending? For the month, consider taking the time before each purchase you make to ensure that it’s something you really want or need. The goal is to cut unnecessary spending while also getting maximum enjoyment from your money.