Your financial checklist for the New Year with Shayne Sommer

On the fourth day of Christmas, Livewire shares financial tips to keep your portfolio in good shape for 2026.

The final months of a year can be a dangerous time for your finances, given Black Friday, Christmas spending and Boxing Day sales. Research by Finder found that Australians started January 2025 with $2.7 billion in debt, with debts racked up over Christmas taking up to five months to pay off.

It doesn’t have to be this way, of course. A bit of forward planning makes all the difference, but if it's too late this year, you can always reset for next year. The downtime after Christmas, in between snacking on leftover turkey, can be a great time to reset your finances and plan for the future.

To help with this, I spoke to Shayne Sommer, Private Wealth Adviser at Shadforth Financial Group, for her tips on reviewing your finances, setting financial goals, and avoiding future festive-season blow-outs. Read on for her suggestions.

What basic steps do you recommend people take at the end of the year to review their finances?

In the short term:

Start by reviewing how you manage your money day to day. How many bank accounts do you have versus how many do you actually use? It’s common to accumulate multiple accounts that serve similar purposes. Decluttering your banking by closing accounts you don’t need can simplify your finances and make it easier to track your cash flow. Think of it as a financial ‘end of year clean-up’.

In the longer term:

Create a clear picture of your financial position. List your assets and liabilities, such as your home, possibly investment property or shares, as well as loans and credit cards. Note the value of each. For debts, determine how long you’ll be repaying them. For example, a mortgage may run for decades, but credit cards should be paid in full each month to avoid costly interest.

Next, add another column to your page and list the purpose of each asset. Your family home may be obvious, but what about an investment property? Is it part of your retirement plan, or does it have a second purpose, such as a legacy to family? Avoid more vague goals like “build wealth”; instead, define the end game for each asset. This clarity helps you decide when to buy, hold, or sell. When you manage your assets with purpose, you gain confidence and control over your financial future.

New year, new resolutions – how do you help clients who want to reset their money and investment management with better habits in 2026?

Start by understanding your “cost to be you”, your true annual spend. 

Include not just everyday expenses like groceries, but also irregular costs such as appliance replacements, car repairs, or health expenses. Review the past year to calculate your total annual spend, then break it down into a monthly amount.

Set aside that amount each month in a separate account, either a separate offset account for transparency or a high-interest savings account. This creates a buffer for those lumpy, less frequent expenses. When they arise, you’ll have cash ready without dipping into credit. Also, those funds can work for you all year by reducing interest or earning income.

What five money habits do you wish investors would set as their New Year’s resolutions?

1. Automate some savings - either for an emergency fund or irregular expenses.
2. Track your spending - not to enforce a rigid budget, but to build awareness. Once you know where your money goes, you can make informed choices and take small steps to cut back or adjust where appropriate.
3. Research before you buy - from luxury items to larger purchases. Knowing the average price helps you spot genuine discounts and avoid impulse buys.
4. Get involved with your super - understand how it’s invested and the role of growth versus defensive assets. Building financial acumen costs nothing; however, it pays off in confidence during market volatility.
5. Match your investments to time horizons - super is locked away until retirement, so a growth-oriented mix may suit depending on your circumstances. Cash for a house deposit in two years? That calls for a more defensive approach. Aligning risk with timelines is key.

What are the biggest mistakes that you see people make at this time of the year?

Overspending during the festive season is common, especially when we justify it with “it’s Christmas.” 

If you use credit and don’t pay the balance in full by the next due date, interest can snowball quickly.

Another trap? Splitting bills without a plan. Agree upfront with friends on how costs will be shared. It avoids awkward conversations and helps you stick to a spending limit without eating into savings.

What steps might clients take in the new year to manage any debts they’ve accrued over Christmas? 

First, tally up festive season expenses to understand their impact. Then, set aside a monthly amount throughout the year in preparation for next Christmas. 

Keep it in an offset or high-interest savings account so it works for you all year. By December, you’ll have your own “Santa’s sack” of funds ready - plus the bonus of interest savings or earnings. That’s a gift worth giving yourself!

Final thoughts

Research from the Dimensional 2018-19 Investor Survey shows that 31% of women and 23% of men never talk about investing with friends, family, or colleagues.

To make money less of a taboo topic, I’ve started sharing conversational prompts on LinkedIn under #52conversationsaboutmoney. These aren’t intrusive questions about salaries or spending habits - they’re simple tips and strategies people can share to help others navigate their finances.

Join the conversation and help make financial literacy something we openly discuss.

What financial tips do you have for the end of the year? Share your best tips in the comments below.