The start of a new financial year in Australia, beginning July 1, is a golden opportunity to reset, refocus, and take charge of your financial life. Just like a New Year’s resolution for your wallet, it’s the perfect time to shake off any bad money habits and build stronger, more secure ones.
Whether you’re a seasoned investor or just trying to stop living paycheck to paycheck, adopting solid financial habits early in the financial year can set the tone for the next 12 months. This guide will walk you through ten impactful financial habits that can boost your savings, cut unnecessary costs, improve your credit score, and prepare you for long-term success
Think of your finances as a garden — neglect it, and weeds will grow. But with consistent care, planning, and smart decisions, it can flourish. Let’s dive into the top financial habits you need to make 2025-26 your best financial year yet.
Habit 1: Review and Reset Your Financial Goals
Start the new financial year with intention. Ask yourself: what do I want to achieve financially in the next 12 months? Maybe it’s saving for a house deposit, paying off a credit card, investing in the stock market, or simply building an emergency fund.
Begin by reviewing your previous financial year. Did you meet your goals? If not, why? Be brutally honest here — maybe you underestimated your expenses, didn’t track your spending, or life simply threw curveballs.
Once you’ve reflected, it’s time to reset. Write down SMART goals — Specific, Measurable, Achievable, Relevant, and Time-bound. For instance:
- “Save $10,000 for a home deposit by June 2026.”
- “Clear $5,000 of credit card debt by December 2025.”
- “Invest $200 monthly into a diversified ETF portfolio.”
Don’t just think about big goals. Break them into monthly or even weekly milestones. Set calendar reminders. Visualise your progress using apps or charts. This clarity not only motivates you but also holds you accountable.
Habit 2: Create a Fresh, Realistic Budget
A budget isn’t about restricting yourself — it’s about giving every dollar a job. At the start of the financial year, build a fresh budget that reflects your current income, expenses, lifestyle changes, and new financial goals.
First, track your spending for the last 3-6 months. Look through your bank statements or use budgeting apps to categorise where your money went. You might be surprised at how much you’re spending on takeout or subscriptions you forgot about.
Then, choose a budgeting method that works for you:
- 50/30/20 Rule (50% needs, 30% wants, 20% savings)
- Zero-based Budgeting (every dollar is allocated)
- Envelope System (great for cash users)
Factor in irregular expenses like car rego, birthdays, holidays, and back-to-school costs. Build sinking funds for them. Set boundaries on discretionary categories like dining out or online shopping.
A realistic budget is flexible. Review and adjust it monthly, especially after big life changes. With the right plan, you’ll not only stop overspending — you’ll start building momentum.
Habit 3: Track Every Dollar You Spend
It’s shocking how quickly a $5 coffee here and a $20 lunch there can drain your account. That’s why tracking your spending is a game-changer. It helps you spot leaks in your budget, change behaviour, and feel more in control of your money.
Start simple: Use a Google Sheet or budget planner notebook or discover many of the online apps available.
Be consistent — daily or weekly tracking is best. Categorise everything: groceries, petrol, entertainment, bills, kids’ expenses. Watch out for:
- Subscription traps
- Impulse purchases
- ATM withdrawals with no trace
Over time, this habit rewires how you think about money. It’s like a fitness tracker for your bank account — the more awareness you build, the smarter choices you’ll make.
Habit 4: Prioritise Debt Repayment Strategically
Debt is like a leaky bucket — you can’t fill it if it’s constantly draining. If you’re carrying high-interest debts, especially credit cards or payday loans, the start of the financial year is the moment to tackle them aggressively.
Use one of these proven methods:
Debt Avalanche: Pay off debts from highest to lowest interest rate. You’ll save more in interest.
Debt Snowball: Pay off the smallest balances first. You’ll see quicker wins and build motivation.
List out all your debts: balance, minimum repayment, interest rate. Add them to your budget. Automate repayments where possible to avoid late fees. Use lump sums like tax refunds or bonuses to knock down balances.
Also, consider consolidating multiple debts into a personal loan with a lower interest rate. Just make sure it doesn’t extend the repayment term too far or carry high fees.
And here’s the golden rule — stop accumulating new debt. Leave credit cards at home, or freeze them digitally if you must. The freedom of being debt-free is worth the discipline.
Habit 5: Automate Your Savings and Investments
Automation is the ultimate financial hack. When you automate savings and investments, you’re paying yourself first — before lifestyle creep eats into your income. It removes willpower from the equation and builds wealth quietly in the background.
Start by setting up automatic transfers from your everyday account to a high-interest savings account the day after payday. Treat it like a non-negotiable bill.
Set goals:
- Emergency fund (3–6 months of living expenses)
- Travel or holiday fund
- House deposit
- Investment account
Want to start investing? Auto-invest small amounts into diversified portfolios or ETFs. Set a recurring transfer — even $50 a week adds up over time.
Automate super contributions too if you’re self-employed. And don’t forget about micro-investing apps if you’re a beginner.
By the time you check again in a few months, you’ll have built a nice little nest egg — without feeling the pinch.
Habit 6: Review Your Superannuation Performance
Superannuation is one of the most important yet most neglected parts of your long-term financial strategy. If you’re like most Australians, you might not have checked your super in months — or even years. But July is the perfect time to get reacquainted with your retirement savings.
Start by logging into your MyGov account and linking it to the ATO to view all your super accounts. Many people have multiple super funds floating around from previous jobs. If that’s you, consider consolidating them to avoid duplicate fees (but always check if you’ll lose insurance benefits before merging).
Next, review the performance of your current super fund. Compare its returns over the past 5 and 10 years against industry averages using comparison sites like Canstar or SuperRatings. If your fund has been underperforming or charging high fees, it may be time to switch.
Also, review your investment strategy within your fund — are you in a default, conservative, or aggressive portfolio? The younger you are, the more risk you can typically take for higher growth over time. Lastly, boost your super with voluntary contributions. Even $20 a week adds up — and you may qualify for government co-contributions or tax benefits.
Super might not feel urgent today, but your future self will thank you.
Habit 7: Check Your Credit Report and Improve Your Score
Your credit score plays a huge role in your financial future. It affects whether you’re approved for loans, credit cards, even rental applications. And yet, many Australians don’t even know their score, let alone how to improve it.
At the start of the financial year, take 10 minutes to request a free credit report from services that are available.
Once you have it, check for:
- Incorrect details (like wrong addresses or duplicate accounts)
- Accounts you didn’t open (could indicate identity theft)
- Late payments or defaults
- Your credit limit and usage
If you spot errors, contact the credit provider immediately to dispute them. Even small fixes can boost your score.
To improve your score moving forward:
- Always pay bills and loans on time
- Keep credit card balances low
- Avoid unnecessary applications for credit
- Maintain a good credit history over time
A good credit score can save you thousands in interest when applying for a home loan or car finance — it’s like your financial passport, so keep it clean.
Buy Now Pay Later – BNPL
As of 10 June 2025, Buy Now Pay Later (BNPL) services in Australia are now officially treated as credit products—meaning providers must hold a credit licence and play by the same rules as traditional lenders. One key change is the introduction of mandatory credit checks, which may show up on your credit report and affect your credit score. Some providers may also start reporting your repayment history, so if you miss a payment, it could leave a mark. On the flip side, managing your repayments well might actually help your score over time. The aim of these changes is to make lending more responsible and ensure you’re only borrowing what you can afford. So if you’re a regular BNPL user, it’s a good time to check in on your spending habits and be aware of how these services could shape your financial future.
Habit 8: Update Your Insurance Policies
Insurance isn’t the most exciting topic, but it’s one of the most essential. As your life changes — new job, family, home, health — your insurance needs evolve too. The beginning of the financial year is a great time to review and update all your policies.
Start with health insurance. Check if your plan still suits your medical needs, especially if you’ve had major changes like surgery, pregnancy, or starting a family. Compare providers using websites like Compare the Market or iSelect to potentially find better coverage or lower premiums.
Next, review your life insurance, income protection, and total permanent disability (TPD) coverage. These often sit inside your super, so log into your fund and see what you’re covered for. You may find you’re underinsured — or paying too much for unnecessary extras.
Don’t forget home, contents, car, and pet insurance. Update your asset valuations, especially if you’ve bought new tech, jewellery, or furniture. Check if your policy includes flood cover or new car replacement.
Set reminders to shop around each year before renewal — loyalty rarely pays in the insurance world. Being proactive with insurance is like wearing a seatbelt: you may not need it every day, but it’s vital when things go wrong.
Habit 9: Maximise Your Tax Position Early
Most people scramble at tax time, but smart money movers start preparing their tax strategy on day one of the financial year. That’s because the biggest tax savings come from consistent planning, not last-minute paperwork.
Begin by understanding which deductions you’re eligible for. If you’re working from home, you may claim a portion of utilities, internet, phone, office equipment, and even occupancy costs depending on your arrangement. If you’re a sole trader or side hustler, keep track of business expenses from July 1 onwards.
Log every deductible expense with a receipt-tracking app like ATO myDeductions or other apps. Keep a dedicated email folder for tax receipts and store everything digitally. It’ll save hours next June.
Also, consider tax-effective strategies:
- Salary sacrifice into super
- Prepaying deductible expenses (e.g. insurance, interest)
- Donating to charities for a tax offset
Engage a tax accountant early if your finances are complex — they’ll help plan for next EOFY, not just react to the one that’s passed. By planning early, you’ll minimise tax stress and potentially score a bigger refund.
Habit 10: Educate Yourself Financially – Continuously
Your financial health is only as strong as your knowledge. And in a world full of money myths and bad advice on social media, staying educated is more important than ever. Luckily, learning about finance has never been more accessible — or more fun.
Kick off the financial year by committing to regular financial education. Read one personal finance book a month (like The Barefoot Investor or Money School). Subscribe to podcasts like She’s on the Money, Equity Mates, or My Millennial Money during your commute. Follow credible finance experts on YouTube, LinkedIn, or even TikTok — just ensure they’re licensed and transparent.
If you’re ready to level up, take a free or low-cost online course on budgeting, investing, tax, or retirement planning. Platforms like Coursera, Udemy, or even your super fund may offer resources.
Set a 12-month learning goal. Maybe you want to understand ETFs, learn how to flip a side hustle into a business, or master the art of negotiation.
Knowledge compounds like interest — the more you learn, the better your decisions. And over time, that turns into real wealth.
Conclusion
The new financial year isn’t just about numbers — it’s about mindset. It’s a chance to draw a line in the sand, clean up old money habits, and replace them with ones that move you closer to the life you want. You don’t have to be perfect, but you do need to be consistent.
Adopt just a few of these habits, and by next June, you won’t recognise your finances — in the best possible way. So start today. Your future self will be glad you did.
FAQs
What’s the best financial habit to start with?
Start by tracking your spending. It gives you instant awareness and reveals where your money leaks are.
How do I make my financial habits stick long-term?
Create systems, not willpower-based routines. Automate everything and set calendar reminders for reviews.
Should I speak to a financial advisor each new year?
If your finances are complex, yes. Otherwise, doing a personal finance audit yourself is a great first step.
How often should I review my financial goals?
Quarterly is ideal. Things change fast — make sure your goals still align with your life.
Can these habits help with wealth building over time?
Absolutely. These aren’t just habits — they’re stepping stones to long-term financial independence.
Disclaimer
The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. Leenane Templeton does not recommend any of the apps mentioned nor is affiliated with them in anyway they are just an example of what is available. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.
