The New Year is unquestionably an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions focus on becoming healthier, strengthening their career, or improving their financial health. Now we all recognise how challenging it can be to stick to our New Year’s resolutions, so it’s important that you make sensible, obtainable goals that can be accomplished with a certain degree of determination and self-discipline.
If you’ve decided that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To achieve considerable financial improvements in your life, it’s vital that you address only the things you can control and to review your progression routinely. To give you some insight on the best ways to do this, the following outlines some suggestions that you should follow if you choose to enhance your financial well-being in the following year.
Set clear financial goals
Studies indicates that merely writing down goals markedly increases the likelihood of you reaching them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the chances of you reaching these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, for instance retirement, may necessitate the services of a financial planner, but there are many practical, feasible goals that you can plan by yourself, for instance purchasing a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and revising your progression on a regular basis is the key to success.
Increase your savings
Lot of people aren’t sure how much money they save every year, so it’s important that you determine an actual dollar amount that you hope to save for the forthcoming year. Regardless if you achieve this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to reach 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 set up an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will increase your net worth and long-term financial health.
Track your spending
Understanding how much you spend every month is critical in having the ability to increase your financial health. Keeping every bill and receipt and manually producing a spreadsheet is one way to do it, but there are some terrific apps that track your spending on the go, providing you with a precise indication of how much you’re spending with very little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and reliable tool that helps you understand your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are many other apps available, so don’t be afraid to test a few to find which is best for you.
Revise your home loan and insurance policies
Assessing your mortgage and insurance policies is an excellent way to increase your savings. For example, you should be reviewing how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions adjust 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 every year, so it’s undoubtedly worth the time and effort! If you find a better offer somewhere else, don’t hesitate to ask your current provider to match it, and equally, don’t be afraid to switch providers if they don’t. There’s loads of online resources which can successfully guide you through this process.
Seek advice promptly if you’re experiencing financial turmoil
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial distress without realising that there are plenty 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 regarding your financial predicament, don’t hesitate to talk with Bankruptcy Experts Wyong on 1300 795 575, or visit our website for more information: Bankruptcy Wyong