The New Year is certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions concentrate on being healthier, enhancing their career, or improving their financial circumstances. Now we all understand how challenging it can be to stick to our New Year’s resolutions, so it’s important that you make reasonable, attainable goals that can be achieved with a specific degree of dedication and discipline.
If you’ve elected that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning required. To develop significant financial improvements in your life, it’s integral that you focus on the things you can control and to assess your progress regularly. To give you some insight on the best ways to do this, the following outlines some recommendations that you should follow if you choose to improve your financial well-being in the following year.
Set clear financial goals
Studies indicates that simply writing down goals considerably increases the likelihood of you achieving them. In a monetary sense, writing down precise goals with an expected timeline not only increases the likelihood of you reaching these goals, but you’ll likewise understand what is most important to you.
Some financial goals, like retirement, may require the assistance of a financial planner, but there are many straightforward, conceivable goals that you can plan by yourself, such as purchasing a car, saving for a home deposit, or putting together an emergency fund for a rainy day. It’s important that you take small steps to accomplish these goals, and assessing your progression on a regular basis is the key to success.
Increase your savings
Most individuals have no idea how much money they save annually, so itis critical that you determine an actual dollar amount that you wish to save for the upcoming year. Regardless of whether you reach this goal or not isn’t the issue, the fact that you’re setting specific goals and planning ways to achieve these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (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 increase your net worth and overall financial health.
Track your spending
Understanding how much you spend every month is vital in having the capacity to increase your financial health. Keeping every bill and receipt and manually producing a spreadsheet is one way to do it, but there are a number of wonderful apps that monitor your spending on the go, giving you a detailed indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient tool that helps you realise your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t satisfy you, there are numerous other apps on the market, so don’t hesitate to test a few to discover which is best for you.
Examine your home loan and insurance policies
Evaluating your home loan and insurance policies is a practical way to increase your savings. For instance, you should be looking at how your current mortgage and insurance policies compare with other providers on an annual basis. Financial institutions modify 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 each year, so it’s definitely worth the effort! If you find a better offer elsewhere, don’t be afraid to ask your current provider to match it, and in the same way, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.
Seek advice promptly if you’re experiencing financial hardshp
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial hardship without understanding that there are a number of options available to them to enhance their financial wellbeing.
If you’re encountering any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice pertaining to your financial predicament, don’t hesitate to get in touch with Bankruptcy Experts Emerald on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsemerald.com.au