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The silly season is well and truly upon us, and while this time of year is traditionally associated with joy and celebration, all feelings at this time of the year are exaggerated.<\/p>\n
If you\u2019re surrounded by beautiful friends and family, December turbocharges the joy. The same goes for the feelings we\u2019ve had around money: the month of December really drives home that we\u2019re maybe not in the best financial situation, or that we\u2019re struggling a bit to keep on top of our budgets.<\/p>\n
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Amidst the holiday hustle, we\u2019re actually in the perfect position to conduct a comprehensive financial audit.<\/span>Credit: <\/span>Dionne Gain<\/cite><\/p>\n So as we continue to gear up for this festive season, we also need to look after ourselves a bit more than usual \u2013 personally and financially \u2013 because wellbeing is holistic. While Christmas cheer may tempt us to loosen our purse strings, the reality is that Australians are facing increased financial strain due to rising costs of living.<\/p>\n According to a recent Finder survey, the average Australian is projected to spend $1479 this Christmas, marking a 9 per cent increase from the previous year. With a national holiday spending estimate of $30 billion, managing expenses during this festive period is crucial to avoiding undue financial stress.<\/p>\n Amid the holiday hustle, we\u2019re actually in the perfect position to conduct a comprehensive financial audit \u2013 the ultimate form of self-care this festive season if you ask me. Here are all the things you can do before January 1, 2024 to ensure you\u2019re stepping into the new year in the best way possible.<\/p>\n Taking control of your financial wellbeing now can help to alleviate stress and pave the way for a merry and bright 2024.<\/p>\n 1. Conduct a financial audit and shop around. <\/strong>Reviewing all outgoing costs, from utility bills to recurring subscriptions, allows for a thorough assessment of where money is allocated. Identifying areas for potential savings can be empowering, especially when each dollar saved contributes to building financial resilience.<\/p>\n 2. Build up an emergency fund. <\/strong>In a year when the cost of living has surged and financial pressures have escalated, one key resolution is to build or replenish an emergency fund. With uncertainty in the economic landscape, having a safety net is paramount.<\/p>\n I always get asked \u201cHow much should I have in my emergency fund Victoria?!\u201d and the answer is going to vary depending on your situation \u2013 ideally start with a fund that can cover three months of your expenses and grow from there. It will look different for everyone.<\/p>\n 3. Ditch the \u2018it\u2019s not worth it\u2019 attitude. <\/strong>Together we will dispel the notion that small savings aren\u2019t worth the effort because from little things big things really do grow.<\/p>\n We all too often underestimate the impact of consistent, even modest, contributions to savings. Every dollar saved is a step toward financial security, and adopting a proactive attitude, regardless of the amount, sets a positive precedent for future financial habits. Future you is absolutely going to thank you.<\/p>\n 4. Smash down debt. <\/strong>As the year draws to a close, addressing outstanding debts becomes a priority. Credit card balances, in particular, should be diligently managed.<\/p>\n In a perfect world, you\u2019d be able to completely clear it every month, however that\u2019s not the reality for many people right now, and that\u2019s okay \u2013 you\u2019re doing the best you can right now and need to remember that this is just another season of life.<\/p>\n Don\u2019t be too hard on yourself about it, but definitely don\u2019t bury your head in the sand and pretend it\u2019s not happening because that\u2019s when debt starts to take over and snowball more.<\/p>\n 5. Make the most of the higher savings rates on offer. <\/strong>With interest rates at an all-time high, making the most of higher savings rates makes a lot of sense. Whether starting a new savings plan or reassessing existing funds, seeking out accounts with competitive interest rates ensures that your money works more efficiently for you. Maintaining a clear distinction between emergency funds and general savings helps avoid dipping into essential reserves.<\/p>\n 6. Create a budget.<\/strong> Budgeting often gets a bad rap for being tedious and restrictive, but in truth, it is a powerful tool for financial empowerment.<\/p>\n Creating a budget, whether through online tools or a pen-and-paper approach, offers a holistic view of income and expenses. It fosters a sense of control and clarity, making it easier to set financial goals and track progress. One of my favourite websites is MoneySmart, where they have a basic and free downloadable budget to get you started.<\/p>\n 7. Review your mortgage.<\/strong> As we approach the new year, it\u2019s also an opportune time to review mortgage arrangements and now\u2019s the time to check in with your broker and see what they can do to help you get the best deal.<\/p>\n Thankfully, the RBA didn\u2019t increase rates at their last meeting (thank you!) and they won\u2019t be able to again until February (win!) because they don\u2019t meet in January. So take some time to check out your mortgage or ask your broker to do a health check to ensure you\u2019re in the best possible position coming into 2024.<\/p>\n 8. Check in on your superannuation.<\/strong> Another year older another year wiser they say \u2013 and it would be a wise decision to check in on your super fund to ensure it\u2019s tracking away nicely.<\/p>\n The Australian government have a very helpful tool called YourSuper, which is a comparison tool helps you compare super funds based on their fees and performance. You can also see how your personal super fund compares against others within your myGov account \u2013 all for free, and all in a completely non-biased way.<\/p>\n My favourite thing about this website is that they share the top and bottom performing superannuation products, which Your Super will ensure superannuation funds are more accountable for how they spend your money \u2013 and will give you the piece of mind that you\u2019re on the right track.<\/p>\n While a laundry list of financial must-dos was probably not what you were thinking I\u2019d be providing you this silly season, they\u2019re arguably the best gifts I could share with you. Setting yourself up for success in 2024 begins with some smart planning, and some strategic decision-making.<\/p>\n Taking control of your financial wellbeing now, especially heading into Christmas can help to alleviate stress and pave the way for a merry and bright 2024.<\/p>\n Victoria Devine is an award-winning retired financial adviser, best-selling author, and host of Australia\u2019s number one finance podcast, She\u2019s on the Money.<\/strong> Victoria is also the founder and co-director of Zella Money.<\/strong><\/p>\n