#Everyoneneedsaplan to review their financial situation regularly.  Now that the end of the financial year has been completed, it's a great time to get all your finances in order, to make plans for the next 12 months.

Most people will agree that it is important to get their finances in order - 'I've paid a lot of people, but I don't actually know the reason why'.  Sound familiar?  We all know we need to save and make sure we look after our finances, however a lot of the time we forget the reason why we do these things.

Here are the Top Five Tips to Spring Clean your finances

1. List all goals and objectives for the next 12 months

• It is extremely important to firstly list your goals and objectives.  Goals and Objectives are the reason why you need to prepare a plan and there has to be an end goal or objective for any plan to succeed.
• These Goals and Objectives should be reviewed on a regular basis, to make sure you are on track, or to make any necessary adjustments.
• To 'Spring Clean' your finances, you should list the Goals and Objectives you want to achieve in the next 12 months.  (Long term goals are sometimes harder to envisage).

Some short-term financial goals and objectives may include:

•     Going on holiday
•     Updating your car
•     Completing some renovations to your home
•     Consolidating some debts

It is also important to list your personal goals which could include:

•     Ticking off one item from your bucket list (or just making a bucket list)
•     Achieving a personal fitness goal
•     Attending a self-improvement class
•     Or just trying something new

2. Complete updated income and expenditure budget

For any goal or objective to be achievable, the income and expenditure required to meet that goal or objective has to be realistic. There is no use setting a goal or objective, if you simply don't have the financial resources to be able to meet those goals or objectives, because you are just setting yourself up for disappointment.

•     List all of your income that you receive after tax.  Include employment income, investment income (cash account interest, rental property, etc.)
•     Create and review your existing expenditure budget, and confirm all expenses are accurate and realistic.
•     Only include regular expenses in your budget, and not the costs for goals and objectives. (These costs will be met from your surplus income).
•     Include any bonuses or commissions which are likely to be received in the next 12 months (after tax).

3. List all of your financial resources only those that will help you achieve your goals and objectives.

• List financial resources such as your Cash Savings and Investments which you can access in the next 12 months.
• It is also a good idea to list any long-term investments such as superannuation, managed fund investments, property, etc., just in case anything needs to be done regarding these investments (i.e. consolidating your three superannuation investment funds)
• Do not include your personal use assets such as your home, motor vehicle, etc., as these assets are not likely to help you achieve your goals and objectives.

4. List all of the risks associated with stopping you from achieving your goals and objectives such as:

• Asset risks (home and contents insurance; vehicle insurance)
• Personal risks (disability, death, major medical trauma) which may prevent you from earning income required to achieve your goals and objectives
• Make sure you include any insurances that form part of any of your superannuation investment accounts (you may have more than one insurance cover if you have several superannuation investment accounts).

5. Complete an assessment as to whether you have enough financial resources to meet your goals and objectives for the next 12 months.

• If you have sufficient financial resources, and job done and well done!
• If you do not have sufficient financial resources, then you need to readjust your goals and objectives.
• It is also a good idea to double-check your long-term goals (such as retirement) are also on track i.e. will you have enough retirement savings such as superannuation, and other investments, to meet your expenditure in retirement?
• Whatever the outcome is of your assessment, forward the assessment to your financial adviser and ask for their review and comment (it's always good for a second pair of eyes to peruse your work, as they may pick up on something you have missed).

If you do not have a financial advisor, now is the perfect time for you to engage one. Contact us1300 261 373 to arrange an appointment for aFREE FINANCIAL ASSESSMENT because #everyoneneedsaplan to review their finances regularly.