The New Year is obviously an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on being healthier, enhancing their career, or improving their financial circumstances. Now all of us know how tough it can be to keep our New Year’s resolutions, so it’s important that you make practical, obtainable goals that can be accomplished with a certain degree of determination and self-control.
If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning involved. To realise significant financial improvements in your life, it’s essential that you focus on the things you can control and to assess your progression on a regular basis. To give you some ideas on effective ways to do this, the following details some suggestions that you should follow if you aspire to improve your financial well-being in the upcoming year.
Set clear financial goals
Research have revealed that simply writing down goals considerably increases the chances of you accomplishing them. In a financial sense, writing down specific goals with an expected timeline not only increases the likelihood of you achieving these goals, but you’ll additionally understand what is most important to you.
Several financial goals, for example retirement, may necessitate the support of a financial planner, but there are many straightforward, plausible goals that you can arrange on your own, for example purchasing a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and reviewing your progress often is the key to success.
Increase your savings
Most people have no idea how much money they save each year, so it is crucial that you stipulate an actual dollar amount that you aspire to save for the coming 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 achieve these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), or established 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 long-term financial health.
Track your spending
Understanding how much you spend every month is essential in having the ability 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 few wonderful apps that track your spending on the go, providing you with a true indication of how much you’re spending with very little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and effective tool that helps you understand your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t suit you, there are plenty of other apps available, so don’t be afraid to test a few to see which is best for you.
Evaluate your home loan and insurance policies
Reviewing your home loan and insurance policies is an excellent way to increase your savings. For instance, you should be assessing how your current mortgage and insurance policies compare with other providers on an annual basis. Lenders change their policy structures regularly, so chances are you can get a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s certainly worth the effort! If you find a better package elsewhere, don’t hesitate to ask your current provider to match it, and similarly, don’t be afraid to switch providers if they don’t. There’s an abundance of online resources which can effectively guide you through this process.
Seek advice quickly if you’re experiencing financial distress
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 problems without realising that there are a number of options available to them to boost 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 circumstances, don’t hesitate to get in touch with Bankruptcy Experts on 1300 795 575, or visit our website for more information: www.bankruptcyexperts.com.au