How to be financially fit coming into the new year

As we settle into the new year, it is an opportunity to reassess your financial health to help you start the year off on the right foot.

Many Australians are feeling the pressure after a year characterised by cost of living and rate rises. Resilience to tackle unexpected financial events has never been more important. Making informed financial decisions can help positively impact your overall financial wellbeing.

In NobleOak’s recent Life Insurance Pulse Report* conducted with 1,000 Australians, 41% of respondents expressed concerns about their financial situation, with 35% feeling less than fully in control of their personal finances. Of those 35%, 70% want to do more to feel in control of their personal finances.

Karen Eley, Certified Money Coach and Wealth Coach at NobleOak shares her top three tips for approaching 2024 with a financially fit mindset.

1. Setting saving goals will give you and your money a direction and purpose

Goals are very personal and can depend on your life stage, your ambitions, values and of course your personal finances.

When you have a goal in mind, saving up is much easier as you have a ‘why’ which will motivate you to succeed. Whether it be shorter term aspirations such as saving for a holiday, or longer term like buying a house, it is important to understand what you are aiming for.

Set realistic and achievable savings goals. A good place to start is assigning a specific dollar amount and a reasonable timeline that aligns with your savings goals. That way, you can measure your progress, stay on track and adjust where necessary.

A well-structured and automated savings plan can act as a roadmap for achieving your goals.

2. Understand your cashflow

Reviewing your cashflow allows you to effectively track your spending and practice mindful money management. As we come into a new year, there is no better opportunity to review your spending plan and ensure you are well set up for the coming months.

Your income, financial goals and priorities may have shifted over the last 12 months, and inflation rises can impact how you may allocate your resources. A reassessment of your financial situation can help you to better understand your income, expenses, and savings.

Once you have a spending plan or budget in place, automate as much as you can in order to stick to it. This will not only help you manage your expenses, but also reduces the stress associated with overspending.

3. Life insurance can help provide long-term financial stability

In the pursuit of financial fitness, it is important to cover not only short-term goals, but also your long-term financial considerations. This often means considering the ways in which you can financially protect yourself and your loved ones, today and in the future.

Life insurance is one item to consider. Life insurance products such as Life cover, Income Protection, Trauma or Total and Permanent Disability (TPD) can assist financial stability by helping provide protection and security for you and your family when they need it most. Incorporating life insurance into your financial plan is a proactive and compassionate strategy that can help provide a valuable safety net to some of life’s uncertainties.

Let’s face it – figuring out how to navigate your money goals can seem a complex and difficult task to tackle. Just like our physical fitness, our financial fitness requires a commitment, regular work and, sometimes, a coach.  It can be confusing and daunting to know where to start when setting out your financial plan for the year. However, by adopting a few simple and practical strategies and tips, and taking it one step at a time, you can proactively build positive habits and strengthen your financial fitness.

Karen Eley is a former financial adviser and Certified Money Coach. She combines her financial planning experience with insights from behavioural economics and psychology to help clients uncover the root causes of their financial challenges, increase financial literacy and education and support them develop healthier relationships with money.

*Research conducted on behalf of NobleOak by The Market Intelligence Co, December 2023 with over 1,000 Australian citizens or residents.

The information contained in this document is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before making a decision to purchase or continue with a product you should read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG) found at nobleoak.com.au and consider this information having regards to your own objectives, financial situation and needs. If you are considering replacing an existing life insurance policy you should consider your circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed.