The New Year is undoubtedly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions revolve around being healthier, developing their career, or improving their finances. Now all of us realise how challenging it can be to stick to our New Year’s resolutions, so it is necessary that you make practical, attainable goals that can be accomplished with a specific degree of persistence and self-control.
If you’ve elected that you want to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To achieve considerable financial improvements in your life, it’s essential that you focus on the things you can control and to assess your progression continously. To give you some ideas on effective ways to do this, the following details some recommendations that you should follow if you aspire to improve your financial well-being in the forthcoming year.
Set clear financial goals
Research have shown that simply writing down goals substantially increases the probability of you reaching them. In a financial sense, writing down distinct goals with an anticipated timeline not only increases the likelihood of you reaching these goals, but you’ll additionally understand what is most important to you.
Some financial goals, for instance retirement, may require the assistance of a financial planner, but there are many simple, feasible goals that you can plan by yourself, for instance purchasing a car, saving for a home deposit, or building an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and reviewing your progress on a regular basis is the key to success.
Increase your savings
The majority of people don’t know how much money they save annually, so itis critical that you specify an actual dollar amount that you hope to save for the following year. Whether you reach this goal or not isn’t the issue, the fact that you’re creating specific goals and planning ways to achieve 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 established an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will increase your net worth and general financial health.
Track your spending
Understanding how much you spend every month is integral in being able to increase your financial health. Keeping every bill and receipt and manually producing a spreadsheet is one way to do it, but there are some terrific apps that track your spending on the go, giving you a detailed indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and effective tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are numerous other apps out there, so don’t be afraid to test a couple to see which is best for you.
Examine your mortgage and insurance policies
Revising your home loan and insurance policies is a practical way to increase your savings. For instance, you should be looking at how your current home loan and insurance policies compare with other providers on an annual basis. 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 unquestionably worth the time and effort! If you find a better offer elsewhere, don’t be afraid to ask your existing provider to match it, and likewise, don’t be afraid to switch providers if they don’t. There’s lots of online resources which can thoroughly guide you through this process.
Seek advice immediately if you’re experiencing financial turmoil
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial troubles without understanding that there are plenty of options available to them to enrich their financial wellbeing.
If you’re encountering any financial anguish, the sooner you seek professional advice, the better your recovery options will be. For any advice pertaining to your financial situation, don’t hesitate to get in touch with Bankruptcy Experts Tamworth on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsgeraldton.com.au