The New Year is unquestionably an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions address issues like becoming healthier, enhancing their career, or improving their financial position. Now most of us realise how difficult it can be to keep our New Year’s resolutions, so it is vital that you make realistic, obtainable goals that can be accomplished with a specific degree of dedication and discipline.
If you’ve made a decision that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To obtain meaningful financial improvements in your life, it’s imperative that you focus on the things you can control and to evaluate your progress continously. To give you some insight on effective ways to do this, the following details some suggestions that you should follow if you choose to improve your financial well-being in the upcoming year.
Set clear financial goals
Research reveal that merely writing down goals significantly increases the probability of you accomplishing them. In a financial sense, writing down individual goals with an expected timeline not only increases the chances of you realising these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, for instance retirement, may necessitate the help of a financial planner, but there are many practical, obtainable goals that you can plan on your own, like purchasing a car, saving for a home deposit, or putting together an emergency fund for a rainy day. Itis critical that you take small steps to achieve these goals, and revising your progress often is the key to success.
Increase your savings
Many people have no idea how much money they save each year, so it is vital that you set an actual dollar amount that you aspire to save for the forthcoming year. Regardless if you achieve this goal or not isn’t the point, the fact that you’re setting 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 payments), or organise an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will bolster your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is crucial in being able to increase your financial health. Keeping every bill and receipt and manually developing a spreadsheet is one way to do it, but there are a few terrific apps that monitor your spending on the go, giving you an exact indication of how much you’re spending with very little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and effective tool that helps you realise your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t satisfy you, there are many other apps out there, so don’t hesitate to test a few to find which is best for you.
Examine your mortgage and insurance policies
Reviewing your mortgage and insurance policies is a practical way to increase your savings. For instance, you should be inspecting how your current home loan and insurance policies compare to other providers on an annual basis. Financial institutions modify their policy structures frequently, 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 certainly worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and in the same manner, don’t be afraid to switch providers if they don’t. There’s lots of online resources which can effectively guide you through this process.
Seek advice immediately if you’re experiencing financial hardship
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Many people suffer through years of stress from financial problems without understanding that there are plenty of options available to them to boost their financial well being.
If you’re experiencing any financial anguish, 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 to Bankruptcy Experts Port Stephens on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsportstephens.com.au