The New Year is most certainly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around being healthier, strengthening their career, or improving their financial circumstances. Now most of us appreciate how tough it can be to keep our New Year’s resolutions, so it is essential that you make practical, attainable goals that can be accomplished with a certain degree of willpower and self-control.
If you’ve made a decision that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To develop meaningful financial improvements in your life, it’s important that you focus on the things you can control and to evaluate your progress regularly. To give you some insight on effective ways to do this, the following details some suggestions that you should follow if you want to enhance your financial well-being in the forthcoming year.
Set clear financial goals
Studies have revealed that simply writing down goals substantially increases the chances of you reaching them. In a financial sense, writing down precise goals with an expected timeline not only increases the probability of you achieving these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, like retirement, may require the support of a financial planner, but there are many basic, conceivable goals that you can arrange on your own, such as purchasing a vehicle, saving for a home deposit, or setting up an emergency fund for a rainy day. It is very important that you take small steps to reach these goals, and assessing your progress on a regular basis is the key to success.
Increase your savings
Lots of people don’t know how much money they save each year, so it is very important that you specify an actual dollar amount that you want to save for the forthcoming year. Whether you accomplish this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to achieve these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government contributions), or arrange an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will bolster your net worth and overall financial health.
Track your spending
Understanding just how much you spend each month is essential 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 monitor your spending on the go, giving you a true indication of how much you’re spending with little 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 fit you, there are numerous other apps on the market, so don’t be afraid to test a couple to see which is best for you.
Assess your mortgage and insurance policies
Evaluating your home loan and insurance policies is an excellent way to increase your savings. For example, you should be inspecting how your current mortgage and insurance policies compare with other providers on an annual basis. Lenders modify their policy structures regularly, so chances are you can acquire 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 absolutely worth the effort! If you find a better package elsewhere, don’t hesitate to ask your existing provider to match it, and similarly, 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 quickly if you’re experiencing financial turmoil
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial hardship without realising that there are a number of options available to them to enrich their financial wellbeing.
If you’re encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to get in contact with Bankruptcy Australia on 1300 795 575, or visit our website for more information: www.bankruptcy-australia.net.au