The end of the year is an ideal time to pause and review your finances, but a personal financial audit can be useful at any stage. Just follow this 10-step checklist to guide you through the exercise.
1. Collect last year’s income and expenses information
Gather details of your income sources for the past year. This may include employment income (if applicable), superannuation income streams, pensions, investment income, or other regular payments.
Review your spending across categories such as living expenses, housing costs, health and care expenses, insurance, and discretionary spending. Bank and credit card statements can help you group expenses into clear categories.
2. Review last year’s results
Now work out whether any expense headings increased unexpectedly, and whether your total expenses are (ideally) less than your income. Looking forward, are there any expenses you can reduce (such as unused subscriptions)? Work out your likely expenses for the coming year and set discretionary spending limits.
3. Inspect your debts and credit use
Check the interest rates on your credit cards and loans, including your mortgage. You may be able to switch cards or refinance loans at a better rate.
If you use credit cards or other forms of short-term credit, review how they’re managed and whether balances are being cleared within interest-free periods. Reducing high-interest debt can help improve cash flow and provide greater financial flexibility.
4. Check your savings
Having accessible savings can provide peace of mind and help cover unexpected costs, such as health, care, or living expenses. Review whether your savings are held in suitable accounts, such as high-interest savings accounts, mortgage offset accounts, or short-term deposits.
Consider whether your savings balance is appropriate for your current needs and lifestyle, and whether adjustments could support greater financial security.
5. Review your superannuation
As your circumstances change, it’s important to check whether your superannuation investment settings still suit your age, goals and risk tolerance. Reviewing your fund’s performance and fees can also help ensure your savings are working as effectively as possible.
Take time to confirm that all contributions have been correctly received, and consider whether additional contributions or adjustments may support your retirement income needs. You may also wish to review any government entitlements or offsets you could still be eligible for.
6. Examine your other investments
Look at the way your investment portfolio is allocated between, for example, shares, property, cash and bonds. Does your portfolio’s performance align with your financial goals?
Check your brokerage fees and fund management fees to make sure you’re getting the best deal.
Make sure your CGT records are accurate and up to date.
7. Reassess your insurance needs
Examine your life, property and health insurance, and also your cover for income protection and disability. Do you have enough coverage given any recent life changes, such as children or buying a home? You may need to get up-to-date valuations to ensure you are not under-insured or over-insured.
8. Scrutinise your tax deductions
Ensure you’re not missing out on any legitimate deductions related to work, investments, rental property, super contributions and charity donations.
Check that your private health fund tax statements are correct.
Consider using the ATO myDeductions tool for the coming year.
9. Reconsider your goals
Significant life events can alter your financial priorities. If you’ve changed jobs or your marital status, welcomed children or bought or sold a property, struggled with your health or are looking forward to retirement, you may need to adjust your savings and investments to align with your financial goals for the foreseeable future.
10. Prepare your action plan
Set some financial goals – such as reducing specific expenses or increasing your emergency fund – for the next 12 months, and review your progress on long-term goals such as home purchase or retirement.
Overwhelmed? A financial adviser can help.
That’s quite a lot to get your head around, but if you can make a personal financial audit a part of your annual routine, it will pay dividends. You can rely on a qualified financial adviser, who knows all about budgeting, debts and credit, savings, super, investments and financial goals, to guide you through this important task.
Key facts and figures in this article are sourced from the following:
- ATO YourSuper Comparison Tool: https://www.ato.gov.au/calculators-and-tools/super-yoursuper-comparison-tool
- ATO myDeductions Tool: https://www.ato.gov.au/online-services/online-services-for-individuals-and-sole-traders/ato-app/using-mydeductions/mydeductions#ato-AccesstomyDeductions (Retrieved 28th November 2025)
Ascent Wealth Solutions Pty Ltd (ABN 38 685 677 141) is a Corporate Authorised Representative (No. 1314931) of Personal Financial Services Ltd (ABN 26 098 725 145). Australian Financial Services Licence (No 234459)
