The New Year is unquestionably a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions concentrate on becoming healthier, boosting their career, or improving their financial circumstances. Now most of us recognise how tough it can be to stick to our New Year’s resolutions, so it is necessary that you make reasonable, obtainable goals that can be accomplished with a specific degree of determination and self-discipline.
If you’ve come to a decision that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To realise considerable financial improvements in your life, it’s necessary that you focus on the things you can control and to revise your progress regularly. To give you some ideas on effective ways to do this, the following details some recommendations that you should follow if you wish to improve your financial well-being in the upcoming year.
Set clear financial goals
Research indicates that simply writing down goals significantly increases the chances of you reaching them. In a financial sense, writing down specific goals with an anticipated timeline not only increases the likelihood of you achieving these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, like retirement, may require the assistance of a financial planner, but there are many practical, obtainable goals that you can plan by yourself, like buying a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and revising your progression often is the key to success.
Increase your savings
Many people aren’t sure how much money they save each year, so it is very important that you set an actual dollar amount that you wish to save for the forthcoming year. Whether you accomplish this goal or not isn’t the issue, 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 contributions (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 overall financial health.
Track your spending
Understanding just how much you spend each month is essential 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, providing you with a precise indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and effective tool that helps you understand your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are numerous other apps available, so don’t hesitate to test a couple to discover which is best for you.
Examine your home loan and insurance policies
Assessing your mortgage and insurance policies is an effective way to increase your savings. For example, you should be looking at how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and financial institutions adjust their policy structures all the time, so chances are you can obtain a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s unquestionably 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 way, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can effectively guide you through this process.
Seek advice promptly if you’re experiencing financial hardshp
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial hardship without understanding that there are a number of options available to them to improve their financial wellbeing.
If you’re experiencing any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial predicament, don’t hesitate to talk to Bankruptcy Experts Bendigo on 1300 795 575, or visit our website for more information: www.bankruptcyexpertsbendigo.com.au