The New Year is certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions concentrate on getting healthier, enhancing their career, or improving their finances. Now all of us appreciate how challenging it can be to keep our New Year’s resolutions, so it’s important that you make practical, attainable goals that can be accomplished with a certain degree of willpower and self-control.
If you’ve determined that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To develop meaningful financial improvements in your life, it’s essential that you address only the things you can control and to assess your progression routinely. To give you some ideas on effective ways to do this, the following outlines some recommendations that you should follow if you want to enhance your financial well-being in the following year.
Set clear financial goals
Studies reveal that merely writing down goals greatly increases the probability of you reaching them. In a monetary sense, writing down distinct goals with an expected timeline not only increases the chances of you realising these goals, but you’ll additionally understand what is most important to you.
Some financial goals, such as retirement, may require the services of a financial planner, but there are many basic, achievable goals that you can arrange on your own, for example purchasing a car, 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 often is the key to success.
Increase your savings
Many people don’t know how much money they save annually, so it is very important that you stipulate an actual dollar amount that you wish to save for the upcoming year. Regardless if you reach this goal or not isn’t the issue, the fact that you’re creating specific goals and planning ways to accomplish these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government payments), or arrange an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will enhance your net worth and overall financial health.
Track your spending
Understanding how much you spend each month is pivotal in being able to increase your financial health. Keeping every bill and receipt and manually generating a spreadsheet is one way to do it, but there are some fantastic apps that monitor your spending on the go, giving you a true indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and reliable tool that helps you realise your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are many other apps out there, so don’t be afraid to test a couple to find which is best for you.
Revise your mortgage and insurance policies
Evaluating your mortgage and insurance policies is a practical way to increase your savings. For example, you should be evaluating how your current mortgage and insurance policies compare with other providers on an annual basis. Financial institutions modify 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 undoubtedly worth the effort! If you find a better offer elsewhere, don’t be afraid to ask your existing provider to match it, and in the same manner, don’t hesitate to switch providers if they don’t. There’s lots of online resources which can adequately guide you through this process.
Seek advice quickly if you’re experiencing financial distress
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial hardship without understanding that there are several options available to them to enrich their financial wellbeing.
If you’re experiencing any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to speak with Bankruptcy Experts Taree on 1300 795 575, or visit our website for more information: www.bankruptcyexpertstaree.com.au