The start of a new year is a natural time to reassess priorities, set goals, and establish fresh habits. While many focus on fitness or personal development, financial housekeeping is equally important.

Reviewing your finances regularly, much like getting a health check, can help you uncover potential issues and set the course for long-term success.

Here are some practical steps to get your finances on track this year, no matter your life stage or goals.

Tackle your debt head-on

Debt can feel overwhelming, especially if you’re only paying off the minimum required. However, adopting a strategic repayment approach can help you chip away at balances more effectively.

  • The debt avalanche method: Prioritise paying off the debt with the highest interest rate first while meeting the minimum payments on others. This approach minimises the total interest paid overtime.
  • The debt snowball method: Start with the smallest debts to score early wins and build momentum before tackling larger balances.

If you’re unsure which strategy suits your circumstances, consulting with a financial adviser can help. At Halpin Wealth, we specialise in crafting tailored plans to help our clients regain control of their finances.

Monitor your net worth

Understanding your net worth—everything you own minus what you owe—provides a clear snapshot of your financial health.

Calculate your net worth by listing all your assets (e.g., cash, superannuation, property, and investments) and subtracting your debts (e.g., mortgages, credit cards, HECS-HELP).

Even if your net worth is negative, the key is ensuring it trends upwards over time as your assets grow and your liabilities decrease. This upward trajectory is where effective financial planning plays a crucial role.

Get serious about your cash flow

Net worth offers a big-picture view, but cash flow—the movement of money in and out—is where the real action happens.

Start by tracking your expenses. Often, this reveals surprising patterns in discretionary spending (think takeout, subscriptions, or impulse buys). Once you have a clear picture, create a plan to reduce non-essential spending, directing those savings toward building wealth or preparing for emergencies.

Beef up your emergency fund

An emergency fund is a cornerstone of financial stability. Aim to have three to six months’ worth of living expenses in an easily accessible account.

Think of it as self-insurance. Whether it’s a sudden job loss or an unexpected bill, having a robust emergency fund means you won’t have to dip into investments or take on new debt.

Take charge of your Super

Superannuation is one of the most tax-effective ways to save for retirement, and the earlier you take an active role, the better the results.

Review your superannuation portfolio to ensure it aligns with your long-term goals, consider making additional contributions, and evaluate any insurance cover built into your fund. Small changes today can compound into significant benefits by retirement.

Halpin Wealth’s advisers can help you optimise your Super to ensure your retirement goals become a reality.

Track your deductible expenses

It’s never too early to prepare for tax time. Familiarise yourself with allowable deductions and find a tracking method that suits you—whether it’s a spreadsheet or the ATO’s myDeductions app. Staying organised throughout the year can reduce stress when it’s time to file your return.

Stay consistent and celebrate small wins

Financial housekeeping is a long-term commitment, and immediate results may not always be visible. The key is to remain patient and consistent, celebrating small wins along the way.

If you’re unsure about how to take the first steps or want professional guidance to set and achieve your goals, Halpin Wealth’s experienced advisers are here to help. A no-obligation consultation could be the first step toward a more confident financial future.

Contact Us today to get started to kicking your financial goals for 2025.

Written and accurate as at: January 13, 2025

This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.