The New Year is unquestionably an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions address issues like becoming healthier, developing their career, or improving their financial circumstances. Now all of us appreciate how challenging it can be to stick to our New Year’s resolutions, so it is vital that you make realistic, attainable goals that can be achieved with a specific degree of willpower and self-control.
If you’ve determined that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To attain significant financial improvements in your life, it’s pivotal that you focus on the things you can control and to assess your progress regularly. To give you some insight on how you can do this, the following details some recommendations that you should follow if you want to enhance your financial well-being in the following year.
Set clear financial goals
Studies indicates that simply writing down goals greatly increases the likelihood of you achieving them. In a monetary sense, writing down detailed goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, for instance retirement, may necessitate the support of a financial planner, but there are many practical, achievable goals that you can plan on your own, like purchasing a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It’s important that you take small steps to accomplish these goals, and evaluating your progression frequently is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save every year, so itis critical that you establish an actual dollar amount that you wish to save for the upcoming year. Regardless if you reach this goal or not isn’t the point, the fact that you’re creating specific goals and planning ways to accomplish these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), or arrange an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will bolster your net worth and general financial health.
Track your spending
Understanding just how much you spend every month is integral in being able to increase your financial health. Keeping every bill and receipt and manually developing a spreadsheet is one way to do it, but there are a couple of excellent apps that keep track of your spending on the go, giving you a true indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and dependable tool that helps you realise your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t satisfy you, there are many other apps available, so don’t hesitate to test a few to discover which is best for you.
Review your mortgage and insurance policies
Assessing your mortgage and insurance policies is an excellent way to increase your savings. For example, you should be checking how your current home loan and insurance policies compare with other providers on an annual basis. Banks and financial institutions change their policy structures all the time, so chances are you can acquire a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s absolutely worth the effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and at the same time, don’t be afraid to switch providers if they don’t. There’s plenty of online resources which can effectively guide you through this process.
Seek advice immediately if you’re experiencing financial trouble
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial distress without understanding that there are a number of options available to them to enrich their financial wellbeing.
If you’re experiencing any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial predicament, don’t hesitate to speak to Bankruptcy Experts Whitsundays on 1300 795 575, or visit our website for additional information: Bankruptcy Whitsundays