The New Year is unquestionably an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions revolve around becoming healthier, strengthening their career, or improving their finances. Now we all understand how difficult it can be to stick to our New Year’s resolutions, so it’s important that you make sensible, attainable goals that can be achieved with a specific degree of tenacity and discipline.
If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To achieve significant financial improvements in your life, it’s essential that you address only the things you can control and to evaluate your progression regularly. To give you some insight on the best ways to do this, the following outlines some suggestions that you should follow if you want 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 precise goals with an anticipated timeline not only increases the probability of you accomplishing these goals, but you’ll likewise understand what is most important to you.
Several financial goals, for example retirement, may require the support of a financial planner, but there are many basic, feasible goals that you can arrange on your own, such as buying a vehicle, saving for a home deposit, or establishing an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and examining your progress on a regular basis is the key to success.
Increase your savings
Lots of people have no idea how much money they save every year, so it is vital that you assign an actual dollar amount that you want to save for the following year. Whether you reach 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 part.
Simple ways to increase your savings account is to increase your superannuation contributions (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 enhance your net worth and long-term financial health.
Track your spending
Understanding just how much you spend each month is vital in being able to increase your financial health. Keeping every bill and receipt and manually producing 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, providing you with a true indication of how much you’re spending with minimal effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t satisfy you, there are many other apps available, so don’t hesitate to test a few to discover which is best for you.
Review your home loan and insurance policies
Revising your home loan and insurance policies is a reliable way to increase your savings. For example, you should be reviewing how your current home loan and insurance policies compare to other providers on an annual basis. Financial institutions 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 annually, so it’s certainly worth the effort! If you find a better offer elsewhere, don’t hesitate to ask your current provider to match it, and likewise, 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 without delay 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 distress without realising that there are plenty of options available to them to improve 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 talk with Bankruptcy Experts Tweed Coast on 1300 795 575, or visit our website for additional information: Bankruptcy Tweedcoast