The New Year is certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions address issues like becoming healthier, improving their career, or improving their financial circumstances. Now most of us realise how difficult it can be to stick to our New Year’s resolutions, so it’s important that you make practical, attainable goals that can be achieved with a specific degree of willpower and discipline.
If you’ve decided that you want to improve your financial health in 2018, there’s a fair amount of preparation and planning involved. To develop considerable financial improvements in your life, it’s essential that you address only the things you can control and to evaluate your progress continously. To give you some ideas on the best ways to 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 indicates that simply writing down goals greatly increases the likelihood of you accomplishing them. In a monetary sense, writing down detailed goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll also understand what is most important to you.
A number of financial goals, for example retirement, may require the guidance of a financial planner, but there are many straightforward, achievable goals that you can arrange on your own, such as buying a vehicle, saving for a home deposit, or setting up an emergency fund for a rainy day. Itis critical that you take small steps to achieve these goals, and evaluating your progress regularly is the key to success.
Increase your savings
Lots of people have no idea how much money they save every year, so it is crucial that you assign an actual dollar amount that you want to save for the upcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re specifying 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 contributions), or arrange an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding how much you spend every month is crucial 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 great apps that track your spending on the go, providing you with a precise indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and effective 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 many other apps on the market, so don’t hesitate to test a few to see which is best for you.
Evaluate your mortgage and insurance policies
Assessing your home loan and insurance policies is an excellent way to increase your savings. For instance, you should be evaluating how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and lenders 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 annually, so it’s unquestionably worth the effort! If you find a better package elsewhere, don’t be afraid to ask your current provider to match it, and similarly, don’t be afraid to change providers if they don’t. There’s an abundance of online resources which can effectively guide you through this process.
Seek advice without delay if you’re experiencing financial turmoil
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Many people suffer through years of stress from financial troubles without realising that there are plenty of options available to them to boost their financial wellbeing.
If you’re encountering any financial anguish, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial circumstances, don’t hesitate to get in contact with Bankruptcy Experts Gympie on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsgympie.com.au