The New Year is most certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions concentrate on getting healthier, boosting their career, or improving their financial position. Now most of us appreciate how challenging it can be to keep our New Year’s resolutions, so it is vital that you make sensible, obtainable goals that can be accomplished with a specific degree of persistence and self-discipline.
If you’ve made a decision that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To enjoy significant financial improvements in your life, it’s necessary that you concentrate on the things you can control and to revise your progression regularly. To give you some ideas on how you can do this, the following outlines some suggestions that you should follow if you aspire to improve your financial well-being in the following year.
Set clear financial goals
Research reveal that merely writing down goals substantially increases the chances of you accomplishing them. In a financial sense, writing down specific goals with an expected timeline not only increases the chances of you reaching these goals, but you’ll also understand what is most important to you.
Certain financial goals, like retirement, may require the guidance of a financial planner, but there are many practical, plausible goals that you can plan by yourself, such as buying a car, saving for a home deposit, or establishing an emergency fund for a rainy day. It’s important that you take small steps to reach these goals, and evaluating your progression often is the key to success.
Increase your savings
Lots of people have no idea how much money they save annually, so itis critical that you set an actual dollar amount that you hope to save for the coming year. Regardless if you accomplish 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 contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will enhance your net worth and long-term financial health.
Track your spending
Understanding just how much you spend every month is vital in having the capacity 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 number of wonderful apps that track your spending on the go, giving you an accurate 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 understand your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are numerous other apps on the market, so don’t be afraid to test a couple to discover which is best for you.
Examine your home loan and insurance policies
Revising your home loan and insurance policies is a practical 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. Banks and lenders change their policy structures regularly, 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 clearly worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your current provider to match it, and equally, don’t hesitate 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 distress
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without realising that there are plenty of options available to them to enrich 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 speak to Bankruptcy Experts Wangaratta on 1300 795 575, or visit our website for more information: www.bankruptcyexpertswangaratta.com.au