|January 19, 2018||0|
The New Year is undoubtedly a great time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around getting healthier, strengthening their career, or improving their financial health. Now we all know how tough it can be to stick to our New Year’s resolutions, so it is vital that you make sensible, obtainable goals that can be accomplished with a specific degree of tenacity and discipline.
If you’ve determined that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation involved. To acquire considerable financial improvements in your life, it’s fundamental that you address only the things you can control and to evaluate your progress routinely. To give you some insight on the best ways to do this, the following outlines some recommendations that you should follow if you aspire to enhance your financial well-being in the upcoming year.
Set clear financial goals
Studies have revealed that simply writing down goals considerably increases the chances of you accomplishing them. In a monetary sense, writing down exact goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, such as retirement, may require the guidance of a financial planner, but there are many simple, conceivable goals that you can arrange on your own, for instance buying a car, 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 evaluating 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 every year, so it is vital that you assign an actual dollar amount that you aspire to save for the forthcoming year. Whether you accomplish 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 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. In any case, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding how much you spend every month is crucial in having the capacity to increase your financial health. Keeping every bill and receipt and manually generating a spreadsheet is one way to do it, but there are a few terrific apps that keep track of 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 trusted and reliable tool that helps you realise your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are many other apps available, so don’t be afraid to test a few to find which is best for you.
Evaluate your mortgage and insurance policies
Evaluating your home loan and insurance policies is a practical way to increase your savings. For instance, you should be looking at how your current home loan and insurance policies compare to other providers on an annual basis. Lenders modify their policy structures all the time, so chances are you can get 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 clearly worth the time and effort! If you find a better package 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 lots of online resources which can successfully guide you through this process.
Seek advice without delay if you’re experiencing financial turmoil
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial turmoil without understanding that there are a number of options available to them to improve their financial wellbeing.
If you’re experiencing any financial suffering, 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 reach out to Bankruptcy Emerald on 1300 818 575, or visit our website for more information: http://www.bankruptcy-emerald.com.au/