The New Year is undoubtedly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on being healthier, strengthening their career, or improving their financial position. Now we all recognise how difficult it can be to stick to our New Year’s resolutions, so it is vital that you make realistic, obtainable goals that can be accomplished with a certain degree of persistence and self-control.
If you’ve determined that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning required. To acquire considerable financial improvements in your life, it’s crucial that you concentrate on the things you can control and to assess your progression regularly. To give you some insight 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 coming year.
Set clear financial goals
Research indicates that simply writing down goals markedly increases the likelihood of you reaching them. In a financial sense, writing down specific goals with an anticipated timeline not only increases the likelihood of you reaching these goals, but you’ll also understand what is most important to you.
Several financial goals, such as retirement, may require the guidance of a financial planner, but there are many simple, feasible goals that you can arrange by yourself, such as purchasing a vehicle, saving for a home deposit, or establishing an emergency fund for a rainy day. It is vital that you take small steps to accomplish these goals, and assessing your progress regularly is the key to success.
Increase your savings
Lot of people don’t know how much money they save each year, so itis critical that you establish an actual dollar amount that you aspire to save for the forthcoming 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 aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or organise an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will increase your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is pivotal in having the capacity to increase your financial health. Keeping every bill and receipt and manually generating a spreadsheet is one way to do it, but there are a number of great apps that monitor your spending on the go, giving you a true indication of how much you’re spending with very little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and efficient 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 lots of other apps available, so don’t be afraid to test a couple to see which is best for you.
Evaluate your mortgage and insurance policies
Evaluating your home loan and insurance policies is a practical way to increase your savings. For instance, you should be inspecting how your current home loan and insurance policies compare to other providers on an annual basis. Lenders adjust their policy structures regularly, so chances are you can get a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s undoubtedly worth the effort! If you find a better package somewhere else, don’t be afraid to ask your current provider to match it, and in the same manner, don’t be afraid to change 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 translate to increasing your savings and emergency funds. Many people suffer through years of stress from financial hardship without realising that there are plenty of options available to them to enhance their financial wellbeing.
If you’re experiencing 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 Ipswich on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsipswich.com.au