5 ways to tune-up your finances this year
Written and accurate as at: Jan 14, 2026 Current Stats & Facts
The new year is the perfect time to pull back the curtain on your finances and check what’s working, what isn’t, and what could use some more attention. Here are a few key areas worth reviewing as you set yourself up for the year ahead.
Reflect on the current state of your finances
If you have a budget in place, now is a good time to evaluate it. Be honest about your progress: have you been able to stick to it or is it proving harder than you hoped? If you’re consistently going overboard, it might not be a discipline issue but a sign your budget was a bit unrealistic from the outset.
Make the most of extra money
Extra money can show up in all sorts of ways: a pay rise, a tax refund, even healthier cash flow after a debt has been paid off or interest rates have gone down. Whatever the source, the important thing is what you choose to do with it.
Many people give in to lifestyle creep, immediately scanning their home, wardrobe or driveway for things in need of an upgrade. While this isn’t inherently bad – it’s important to enjoy your money, after all – there might be more impactful ways to put your money to work. Some options to consider are:
- Making extra repayments on your mortgage (or contributing to your offset account)
- Paying down other forms of debt, especially if they have a high-interest rate
- Topping up your super (and claiming a tax deduction on that contribution)
- Saving for your kids’ future, whether that’s education costs or an early inheritance
Get your debts in shape
When reviewing your debts, it helps to know which ones are working for you and which ones are working against you. Good debts are those that can help you build wealth over time – think home loans or HECS-HELP debt – while bad debts are usually tied to short-term spending on things that are likely to lose value.
But even within these two categories, we can break things down further according to priority. Some good debts, like those that are tax-deductible, can lower your tax bill and even open doors to further investment opportunities. Depending on your financial goals, keeping these around might actually be a smart move.
As for bad debts, those with higher interest rates are arguably the worst of the bunch. These can quickly spiral out of control if you’re not careful, so try to be diligent and devise a plan for repaying them as soon as you can.
Plan for the unexpected
The new year is also a good time to give your insurance a fresh look. The type and level of cover that made sense twelve months ago might no longer be appropriate today, and being underinsured can leave you exposed if misfortune does eventually strike.
The same goes for estate planning. If you’ve gotten married, ended a relationship, or welcomed a child into the family, those new circumstances should be reflected in your will. And if you don’t have a will yet, maybe now is the time to draw one up. While you’re not legally required to engage a solicitor, doing so can help ensure your will is valid and leaves no room for misinterpretation by your loved ones.
Get help if you need it
Over time, our finances tend to get more complicated. Higher incomes, mortgage debt and growing investment portfolios can all be difficult to keep on top of, and small missteps can have serious consequences, like a stern call from the ATO.
If your finances are no longer simple enough to be contained in a spreadsheet, it might be time to enlist help from a professional. An accountant or financial adviser can help you identify blind spots, optimise your tax outcomes, and manage your debt more effectively. What’s more, they can help you flesh out your financial goals and draw up clear, workable plans to achieve them.