The New Year is definitely an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around getting healthier, improving their career, or improving their financial health. Now most of us recognise how challenging it can be to keep our New Year’s resolutions, so it is vital that you make reasonable, obtainable goals that can be achieved with a certain degree of determination and self-control.
If you’ve elected that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning involved. To attain significant financial improvements in your life, it’s vital that you concentrate on the things you can control and to assess your progress on a regular basis. To give you some insight on effective ways to 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
Research have shown that merely writing down goals considerably increases the chances of you reaching them. In a monetary sense, writing down specific goals with an anticipated timeline not only increases the chances of you achieving these goals, but you’ll likewise understand what is most important to you.
A number of financial goals, for example retirement, may necessitate the guidance of a financial planner, but there are many straightforward, conceivable goals that you can plan on your own, like purchasing a car, saving for a home deposit, or organising an emergency fund for a rainy day. Itis critical that you take small steps to reach these goals, and examining your progression on a regular basis is the key to success.
Increase your savings
Many people have no idea how much money they save annually, so it is crucial that you establish an actual dollar amount that you want to save for the following year. Whether you achieve this goal or not isn’t the issue, the fact that you’re setting specific goals and planning ways to reach 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 schedule an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding how much you spend each month is crucial 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 few excellent apps that track your spending on the go, giving you a precise 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 reliable tool that helps you realise your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are a number of other apps out there, so don’t be afraid to test a few to discover which is best for you.
Review your home loan and insurance policies
Examining your home loan and insurance policies is a useful way to increase your savings. For instance, you should be evaluating how your current mortgage 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 obtain a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s undoubtedly worth the time and effort! If you find a better package elsewhere, don’t be afraid to ask your existing provider to match it, and in the same manner, don’t be afraid to switch providers if they don’t. There’s an abundance of online resources which can successfully guide you through this process.
Seek advice as soon as possible if you’re experiencing financial trouble
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many people suffer through years of stress from financial turmoil without understanding that there are a number of options available to them to boost their financial wellbeing.
If you’re experiencing any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial situation, don’t hesitate to get in touch with Bankruptcy Experts Hervey Bay on 1300 795 575, or visit our website for more information: www.bankruptcyexpertsherveybay.com.au