The New Year is most certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions concentrate on becoming healthier, developing their career, or improving their financial position. Now we all appreciate how challenging it can be to stick to our New Year’s resolutions, so it is essential that you make realistic, attainable goals that can be accomplished with a certain degree of dedication and discipline.
If you’ve made up your mind that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To acquire considerable financial improvements in your life, it’s pivotal that you concentrate on the things you can control and to evaluate your progress often. To give you some ideas on effective ways to do this, the following outlines some suggestions that you should follow if you wish to improve your financial well-being in the following year.
Set clear financial goals
Studies reveal that merely writing down goals markedly increases the probability of you achieving them. In a financial sense, writing down exact goals with an anticipated timeline not only increases the likelihood of you achieving these goals, but you’ll also understand what is most important to you.
Certain financial goals, for instance retirement, may require the support of a financial planner, but there are many basic, plausible goals that you can plan by yourself, such as purchasing a car, saving for a home deposit, or organising an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and reviewing your progression on a regular basis 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 establish an actual dollar amount that you aspire to save for the upcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re creating specific goals and planning ways to accomplish 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 overall financial health.
Track your spending
Understanding just how much you spend each month is vital in having the capacity 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 number of excellent apps that track your spending on the go, providing you with a detailed indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and dependable tool that helps you realise your typical 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 on the market, so don’t hesitate to test a couple to discover which is best for you.
Review your mortgage and insurance policies
Revising your mortgage and insurance policies is a reliable way to increase your savings. For instance, you should be checking how your current mortgage and insurance policies measure up to other providers on an annual basis. Financial institutions adjust their policy structures regularly, so chances are you can acquire a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars each year, so it’s clearly worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and similarly, don’t hesitate to switch providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.
Seek advice promptly 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 troubles without realising that there are a number of options available to them to boost their financial wellbeing.
If you’re encountering any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice pertaining to your financial circumstances, don’t hesitate to get in contact with Bankruptcy Experts Lismore on 1300 795 575, or visit our website for more information: www.bankruptcyexpertslismore.com.au