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Six tips for a strong start to the new financial year

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Need some guidance for the new financial year? We've gathered some of Money's top experts to bring you a few hot tips for 2016-2017.

Investing Chris Batchelor, Skaffold

When investing in the stock market don't obsess about dividends. Some companies focus on dividends at the expense of running the business well.

new financial year

Look for companies that can consistently generate a high rate of return on their equity. In the long run they are much more likely to add to your wealth.

Saving Effie Zahos, Money editor

Plan to save at least $2 day this new financial year. The secret to building wealth is pretty simple, spend less than what you earn and save a little, often. Save $2 a day during your 20s and you'll have $30,624 by the time you're 40 (this assumes a 7% rate of return).

If you're 40 and you save $50 per week you'll have just over $112,000 by the time you're 60. Nothing amazing here just the magic of compound interest. To help you keep track of what you're spending your money on download the free MoneySmart TrackMySPEND app.

Tax Mark Chapman, H&R Block

As the new tax year starts, you're probably more focused on getting this year's tax return lodged than worrying about next year's.

It pays to start preparing early though. If you put in place an organised system for keeping your tax records now, at the start of the year, preparing your tax return next year will be less stressful and could result in a bigger tax refund.

Keep all your receipts in a safe place, organised by date and type and if you're not sure if you can claim a deduction for that expense, keep the receipt anyway and let your accountant advise you come tax time. Best of all, you don't even need to keep reams of paper these days.

There are lots of apps out there -such as the ATO's MyDeductions or the H&R Block app - which let you store receipts electronically and then download the information straight to your tax return. It's never been easier to keep on top of your tax.

Property Terry Ryder, Hotspotting

Don't be distracted from making decisions and taking action by peripheral issues. Australians have been paralysed by the calling of an election.

Anyone with a long-term investment strategy would be unaffected.

Spending Paul Clitheroe, Money chairman & chief commentator

Have a plan this new financial year to spend less than you earn and direct the surplus to reducing high interest personal debt, investing in decent assets or put it aside for education or a holiday.

Super Susan Hely, Money senior writer

Get more money into superannuation to take advantage of the generous tax concessions. The amount you are allowed to contribute is capped at $30,000 per year for those under 50 and $35,000 for over 50s.

Salary-sacrificed super above your employer super guarantee (SG) is taxed at only 15% which can be lower than your marginal tax rate. Or you can contribute from after-tax or non-concessional income.

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Muhammad anwer Javed Akhter
June 30, 2016 9.52am

Very useful tips. Thank you

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