The New Year is certainly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions revolve around being healthier, enhancing their career, or improving their finances. Now we all appreciate how challenging it can be to keep our New Year’s resolutions, so it is vital that you make realistic, attainable goals that can be accomplished with a certain degree of persistence and self-control.
If you’ve elected that you want to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To attain meaningful financial improvements in your life, it’s fundamental that you concentrate on the things you can control and to revise your progression on a regular basis. To give you some insight on how you can do this, the following outlines some recommendations that you should follow if you choose to enhance your financial well-being in the forthcoming year.
Set clear financial goals
Studies indicates that simply writing down goals markedly increases the probability of you achieving them. In a monetary sense, writing down precise goals with an expected timeline not only increases the likelihood of you realising these goals, but you’ll likewise understand what is most important to you.
Some financial goals, for example retirement, may necessitate the help of a financial planner, but there are many basic, conceivable goals that you can plan by yourself, like buying a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It’s important 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 don’t know how much money they save annually, so it’s important that you assign an actual dollar amount that you aspire to save for the coming year. Whether you reach this goal or not isn’t the point, the fact that you’re setting 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 payments (and possibly Government contributions), or established 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 developing a spreadsheet is one way to do it, but there are a couple of fantastic apps that keep track of your spending on the go, giving you 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 trustworthy and effective tool that helps you realise your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t fit you, there are lots of other apps out there, so don’t hesitate to test a couple to find which is best for you.
Examine your mortgage and insurance policies
Evaluating your home loan and insurance policies is a reliable way to increase your savings. For instance, you should be examining how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and financial institutions change 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 most definitely worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your current provider to match it, and at the same time, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can adequately guide you through this process.
Seek advice as soon as possible 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 understanding that there are several options available to them to improve 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 circumstances, don’t hesitate to get in touch with Bankruptcy Experts Penrith on 1300 795 575, or visit our website for further information: www.bankruptcyexpertspenrith.com.au