The New Year is undoubtedly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions focus on being healthier, strengthening their career, or improving their financial circumstances. Now we all recognise how tough it can be to keep our New Year’s resolutions, so it is necessary that you make reasonable, attainable goals that can be accomplished with a certain degree of determination and discipline.
If you’ve made up your mind that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To enjoy meaningful financial improvements in your life, it’s imperative that you address only the things you can control and to review your progress regularly. To give you some ideas on the best ways to do this, the following details some suggestions that you should follow if you want to improve your financial well-being in the coming year.
Set clear financial goals
Studies reveal that simply writing down goals greatly increases the chances of you accomplishing them. In a financial sense, writing down individual goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll likewise understand what is most important to you.
Some financial goals, for example retirement, may require the support of a financial planner, but there are many basic, plausible goals that you can arrange on your own, for instance purchasing a car, saving for a home deposit, or assembling an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and evaluating your progress frequently is the key to success.
Increase your savings
Lots of people have no idea how much money they save every year, so itis critical that you specify an actual dollar amount that you want to save for the coming year. Whether you accomplish this goal or not isn’t the issue, the fact that you’re specifying 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 set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will increase your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is vital in having the ability 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 fantastic apps that keep track of your spending on the go, providing you with a detailed indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and dependable tool that helps you understand your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are lots of other apps available, so don’t be afraid to test a few to find which is best for you.
Review your mortgage and insurance policies
Evaluating your mortgage and insurance policies is a useful way to increase your savings. For instance, you should be assessing how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions modify their policy structures all the time, 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 time and effort! If you find a better package somewhere else, don’t be afraid to ask your existing provider to match it, and likewise, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.
Seek advice immediately if you’re experiencing financial hardshp
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many people suffer through years of stress from financial problems without understanding that there are a number of options available to them to enrich their financial wellbeing.
If you’re encountering 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 Tennant Creek on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertstennantcreek.com.au