The New Year is certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions concentrate on becoming healthier, strengthening their career, or improving their financial health. Now all of us know how tough it can be to stick to our New Year’s resolutions, so it’s important that you make reasonable, attainable goals that can be achieved with a certain degree of dedication and discipline.
If you’ve come to a decision that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To develop significant financial improvements in your life, it’s imperative that you focus on the things you can control and to examine your progress often. To give you some ideas on the best ways to do this, the following outlines some suggestions that you should follow if you choose to enhance your financial well-being in the following year.
Set clear financial goals
Studies have shown that merely writing down goals considerably increases the probability of you achieving them. In a monetary sense, writing down distinct goals with an expected timeline not only increases the chances of you accomplishing these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, for example retirement, may necessitate the assistance of a financial planner, but there are many basic, feasible goals that you can arrange by yourself, for instance buying a car, saving for a home deposit, or creating an emergency fund for a rainy day. Itis critical that you take small steps to accomplish these goals, and examining your progress regularly is the key to success.
Increase your savings
The majority of people aren’t sure how much money they save each year, so itis critical that you stipulate an actual dollar amount that you wish to save for the following year. Regardless of whether you reach this goal or not isn’t the point, the fact that you’re specifying 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 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 enhance your net worth and long-term financial health.
Track your spending
Understanding how much you spend each month is pivotal in having the capacity 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 monitor your spending on the go, providing you with a detailed indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and efficient tool that helps you realise your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are numerous other apps available, so don’t hesitate to test a couple to discover which is best for you.
Examine your mortgage and insurance policies
Assessing your mortgage and insurance policies is a useful way to increase your savings. For example, you should be looking at how your current home loan and insurance policies compare to other providers on an annual basis. Banks and lenders change their policy structures all the time, so chances are you can receive 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 time and effort! If you find a better package elsewhere, don’t be afraid to ask your current provider to match it, and at the same time, don’t be afraid to change providers if they don’t. There’s an abundance of online resources which can effectively guide you through this process.
Seek advice as soon as possible if you’re experiencing financial trouble
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 troubles without understanding that there are a number of options available to them to boost their financial wellbeing.
If you’re experiencing any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice pertaining to your financial predicament, don’t hesitate to speak with Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertstoowoomba.com.au