Take control of your finances in 2026
Getting on top of your finances is one of the most common new year’s resolutions Australians make. But only 12% of us achieve our goal. Here’s how to be one of them.
More than one in two Australians (52%) plan to get on top of their finances each year, according to research from the Federal government’s Moneysmart website#.
Popular goals include creating or updating a budget (43%), investing more (37%) and paying off debt (33%). But only about one in eight (12%) stick to their plans.
Meanwhile, close to three in five people say not saving enough is what got them off track to begin with*.
Here are some tips to help you get your short-term and long-term finances in order this financial year.
1. Set a budget
To create a budget, you’ll need to understand what your income is, what you spend your money on, and where you may be able to economise to pay off debt, save or invest.
Set realistic limits on your spending, think about how your habits might need to change in order to stick to those limits, and follow through by directing any savings towards achieving your financial goals.
Moneysmart offers tips on how to create a budget, as well as a budget planner to help you identify and track your expenses and money saving tips.
2. Make a plan to clear any debt
Clearing your debts – particularly credit cards, buy now pay later arrangements, unpaid bills, fines and the like – is a critical step towards getting your finances on track.
List any debts you may have and prioritise those that need to be paid first, such as any essential expenses (rates, rent or mortgage repayments, utilities and so on), debts with high interest rates and smaller amounts you can clear quickly.
If you need help, contact the National Debt Helpline, which provides free advice and counselling to help people prioritise and pay off their debts.
3. Set your financial goals
Most people will have a mix of short-term and longer-term financial goals that are very personal to their needs.
The beauty of setting short-term goals is that once you are in the habit of setting money aside to achieve them, it should be easier to maintain that discipline and direct that money to achieving your longer-term objectives.
- Short-term goals are things you would expect to achieve within the next five years. These might include paying off credit cards and other higher interest debts, getting your super in order, saving for a holiday, accumulating an emergency fund or buying a car.
- Medium-term goals are those you might achieve in a five to 20-year time frame. Saving for a house deposit or creating an education fund might fall into this category.
- Long-term goals might include things like paying off your mortgage, making additional super contributions or investing outside your super.
Make your goals SMART
When it comes to determining your goals, it’s important to set what are known as SMART goals, which means they should be:
- Specific
- Measurable
- Achievable
- Realistic
- Time bound.
In practice, rather than aiming to “save more”, an example of a simple, short-term SMART goal might be “set up an automatic deposit of $25 a week to pay off my $1,000 credit card debt by the end of 2025”.
Tell someone you respect
People who talk about their goals with someone they look up to are more likely to achieve them, so don’t be afraid to tell someone you respect not only what your goals are, but how you’re planning to get there**.
4. Super charge your long-term savings
We know from our research that the biggest regret of people as they approach retirement is not contributing more to their retirement savings. In fact, it’s the most common reason people feel they are off track financially, experienced by almost three in five Australians.
Using your super to save and preserve those savings for when you ultimately stop working, is a great way to help prepare financially for the long term.
The earnings your super makes are generally taxed at 15%, which is lower than many people’s marginal tax rate. This means your savings are likely to compound and grow faster.
As the earnings on your super are reinvested and taxed at a lower rate than earnings outside super, you can generate returns on your returns, leading to exponential growth over time.
5. Automate your savings with salary sacrifice
Even small, regular contributions to your super can grow significantly. It works even better if you start early and remain consistent, although there are ways to leverage the benefits of super at any age.
For example, say you decided to give up one takeaway meal a week, saving $25. If you make a $35 pre-tax voluntary contribution to your super each week (assuming a 30% tax rate this would leave you $25 less in your take home pay), here’s how it could compound and contribute meaningful amounts by the time you retire^:
- $89,980 if you start at the age of 30
- $56,622 if you start at 40
- $30,264 if you start at 50.
If you set up a salary sacrifice contribution through your employer using pre-tax income, you might not notice much difference to your take home pay after tax is taken into account.
6. Optimise your super outcomes
Make sure your super is set up to give you the best long-term returns by following this month by month checklist.
FEBRUARY: Set your financial goals
MARCH: Understand how your super is invested
APRIL: Make an additional contribution
MAY: Can super help you catch up or get ahead?
JUNE: Double check the basics
# ASIC research on financial goal setting found while more than half Australians surveyed plan to set a financial goal, only about 12% stick to it.
** ‘When goals are known: the effects of audience relative status on goal commitment and performance’, Journal of Applied Psychology, 2019.
* Rethinking Retirement 2025, commissioned by CFS and conducted with more than 2247 Australians from July-September 2024.
^ These calculations are based on modelling provided by moneysmart.gov.au – superannuation calculator, using the following assumptions: ages as indicated, salary $80,000PA, retirement age 65, superannuation starting balance of $65,000, employer SG plus weekly $36.76 voluntary pre-tax contribution, earning rate 7.5%, effective tax rate on investment earnings 7.0%, investment fees 0.85%, fund fees $74, insurance costs $214, 2.5% inflation, 1.5% additional rise in living standard. Tax rates applicable for the 2025-26 financial year.
Source: Colonial First State
