The New Year is undoubtedly an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions revolve around getting healthier, improving their career, or improving their financial circumstances. Now we all understand how difficult it can be to keep our New Year’s resolutions, so it is essential that you make reasonable, obtainable goals that can be accomplished with a specific degree of tenacity and self-control.
If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning required. To create significant financial improvements in your life, it’s imperative that you focus on the things you can control and to examine your progress continously. To give you some ideas on the best ways to do this, the following outlines some recommendations that you should follow if you wish to improve your financial well-being in the following year.
Set clear financial goals
Studies have shown that simply writing down goals significantly increases the likelihood of you accomplishing them. In a financial sense, writing down distinct goals with an expected timeline not only increases the likelihood of you achieving these goals, but you’ll likewise understand what is most important to you.
Some financial goals, for example retirement, may necessitate the assistance of a financial planner, but there are many practical, obtainable goals that you can arrange on your own, like buying a vehicle, saving for a home deposit, or putting together an emergency fund for a rainy day. Itis critical that you take small steps to achieve these goals, and examining your progression regularly is the key to success.
Increase your savings
Lot of people have no idea how much money they save each year, so it is very important that you determine an actual dollar amount that you aspire 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 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 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 bolster your net worth and long-term financial health.
Track your spending
Understanding just how much you spend every month is essential 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 a few terrific apps that keep track of 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 reputable and efficient tool that helps you realise your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are plenty of other apps available, so don’t hesitate to test a few to find which is best for you.
Review your mortgage and insurance policies
Examining your home loan and insurance policies is an excellent way to increase your savings. For example, you should be looking at how your current mortgage and insurance policies measure up to other providers on an annual basis. Financial institutions modify their policy structures frequently, so chances are you can receive 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 most certainly worth the effort! If you find a better package somewhere else, don’t hesitate to ask your current provider to match it, and in the same way, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can proficiently guide you through this process.
Seek advice as soon as possible if you’re experiencing financial distress
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 hardship without understanding that there are several options available to them to improve 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 regarding your financial circumstances, don’t hesitate to speak to Bankruptcy Experts Maitland on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsmaitland.com.au