The New Year is most certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions revolve around getting healthier, enhancing their career, or improving their financial health. Now we all recognise how tough it can be to stick to our New Year’s resolutions, so it is necessary that you make realistic, attainable goals that can be accomplished with a specific degree of willpower and self-discipline.
If you’ve elected that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To obtain significant financial improvements in your life, it’s key that you focus on the things you can control and to revise your progression continuously. To give you some insight on how to do this, the following outlines some suggestions that you should follow if you wish to improve your financial well-being in the upcoming year.
Set clear financial goals
Research reveal that simply writing down goals greatly increases the likelihood of you reaching them. In a monetary sense, writing down detailed goals with an anticipated timeline not only increases the chances of you reaching these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, for instance retirement, may require the services of a financial planner, but there are many straightforward, plausible goals that you can plan on your own, for example buying a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is very important that you take small steps to achieve these goals, and revising your progression regularly is the key to success.
Increase your savings
Many people don’t know how much money they save every year, so it is vital that you determine an actual dollar amount that you want to save for the coming year. Regardless if you achieve 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 part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), 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 bolster your net worth and long-term financial health.
Track your spending
Understanding how much you spend every month is vital in being able to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a few wonderful apps that keep track of 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 efficient 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 suit you, there are many other apps out there, so don’t be afraid to test a couple to find which is best for you.
Evaluate your home loan and insurance policies
Revising your mortgage and insurance policies is an excellent way to increase your savings. For instance, you should be checking how your current mortgage and insurance policies measure up to 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 homework.
Even small decreases in interest rates can save you thousands of dollars each year, so it’s clearly worth the effort! If you find a better package elsewhere, don’t hesitate to ask your current provider to match it, and likewise, don’t be afraid to change providers if they don’t. There’s plenty of online resources which can successfully guide you through this process.
Seek advice as soon as possible if you’re experiencing financial hardship
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial problems without realising that there are plenty of options available to them to improve their financial well being.
If you’re experiencing any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial predicament, don’t hesitate to talk with Bankruptcy Experts Shellharbour on 1300 795 575, or visit our website for further information: Bankruptcy Shellharbour