<?xml version="1.0" encoding="ISO-8859-1"?> <docID>335583</docID> <postdate>2024-12-18 11:28:45</postdate> <headline>Financial resolutions for the 2025 New Year</headline> <body><p><img class="aligncenter wp-image-335590" src="https://citynews.com.au/wp-content/uploads/2024/12/financial-new-year-2025.jpeg" alt="" width="900" height="600" /></p> <p><span class="kicker-line">Chartered accountant <b>GAIL FREEMAN </b>has compiled some expert inspiration to help with making financial resolutions for 2025.</span></p> <p class="p1"><span class="s1"><b>As we face the New Year, why not use your time away from work to make some financial resolutions for 2025.<span class="Apple-converted-space"> </span></b></span></p> <p class="p2"><span class="s1">I've compiled seven important suggestions to get you started.</span></p> <ol> <li class="p3"> <p><img class=" wp-image-195495" src="https://citynews.com.au/wp-content/uploads/2019/11/Gail-2019-e1684826678316.jpg" alt="" width="370" height="392" /></p> <caption>Gail Freeman of Gail Freeman & Co.</caption> <p><span class="s1">Make a <b>personal budget</b> of your income and expenses and for your business. It can be even more powerful if you make it a cash flow statement setting it out month-by-month to pinpoint the difficult months. Using the month-by-month method also takes seasonal variations into account.</span></li> <li class="p4"><span class="s1">Make a plan to <b>pay off your personal, non-tax-deductible debt</b>. This is even more important now that interest rates have increased. Setting up an offset account with regular savings works really well for non-tax deductible debt. An offset account may not be so sensible for tax deductible debt. Before you make these decisions speak to your accountant or financial adviser.</span></li> <li class="p4"><span class="s1">Search out <b>lower interest rates</b> for all your debt including your home mortgage. While this may require a fair bit of work and may seem too difficult, it is worth it in the long run. You may even find that if you ask your existing lender that they will agree to give you a lower rate.</span></li> <li class="p4"><span class="s1"><b>Update your will</b> and set up an enduring power of attorney if you do not have one. If your will was written 30 years ago now is the time to bring it up to date. I recommend that you take the time and spend the money to use a specialist wills lawyer. Then you can be confident that your estate is dealt with in accordance with your wishes. I have seen many people write their own wills and then their heirs discover that the DIY version didn’t meet the needs of the deceased.</span></li> <li class="p4"><span class="s1">Check your <b>binding nomination</b> with your superannuation fund. Your superannuation is not dealt with by the executor of your estate after your death. It is dealt with by the superannuation fund trustees who may never have met you and have no idea of your objectives. I see this often so I cannot emphasise enough how important this is.</span></li> <li class="p4"><span class="s1">While we are talking about <b>superannuation</b>, if your superannuation balance is less than $500,000 you may have some catch-up concessional contributions available to you. If you have any attributed to the 2020 financial year these will lapse on July 1 2025 if you have not used them up. Make an appointment to get some advice and then you can claim them as a tax deduction in 2025. By way of example, if you contribute $10,000 to your fund and you earn more than $135,000 you will save tax of $2400 and you will receive an additional refund of about $3900 when you lodge your tax return.</span></li> <li class="p4"><span class="s1">With these plans in place you should be able to save some money. Make a <b>savings plan</b> so you have an emergency fund. None of us are immune from financial surprises, the car needing repair, the excess required after storm damage, a broken tooth or your fur baby needing unexpected treatment. That emergency fund will prove very useful.</span></li> </ol> <p class="p5"><span class="s1"><i>The experts at Gail Freeman & Co Pty Ltd thank you for your support in 2024 and take this opportunity to wish you compliments of the season. We are taking a break and will be back in early January. If you want a budget or monthly cash flow template please contact <a href="mailto:info@gailfreeman.com.au">info@gailfreeman.com.au</a>, call 02 6295 2844 or visit <a href="http://gailfreeman.com.au">gailfreeman.com.au</a></i></span></p> <h6 class="p6"><b>Disclaimer<br /> </b>This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.</h6> </body>