The New Year is obviously an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on getting healthier, boosting their career, or improving their financial health. Now all of us understand how difficult it can be to stick to our New Year’s resolutions, so it’s important that you make realistic, attainable goals that can be achieved with a specific degree of dedication and discipline.
If you’ve elected that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning involved. To obtain meaningful financial improvements in your life, it’s essential that you focus on the things you can control and to examine your progress continously. To give you some insight on how to do this, the following details some recommendations that you should follow if you wish to enhance your financial well-being in the coming year.
Set clear financial goals
Research reveal that simply writing down goals noticeably increases the likelihood of you accomplishing them. In a monetary sense, writing down precise goals with an expected timeline not only increases the chances of you realising these goals, but you’ll also understand what is most important to you.
A number of financial goals, for instance retirement, may necessitate the help of a financial planner, but there are many basic, conceivable goals that you can plan on your own, such as purchasing a vehicle, saving for a home deposit, or setting up an emergency fund for a rainy day. Itis critical 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
Most people have no idea how much money they save annually, so it is essential that you stipulate an actual dollar amount that you aspire to save for the forthcoming year. Regardless if you accomplish this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to accomplish these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), or arrange 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 how much you spend each month is essential 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 few terrific apps that monitor your spending on the go, giving you an accurate indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and dependable tool that helps you realise your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are plenty of other apps on the market, so don’t hesitate to test a few to find which is best for you.
Evaluate your mortgage and insurance policies
Evaluating your mortgage and insurance policies is an effective way to increase your savings. For instance, you should be looking at how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders adjust their policy structures frequently, 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 each year, so it’s clearly worth the effort! If you find a better package somewhere else, don’t hesitate to ask your current provider to match it, and in the same manner, don’t be afraid to change providers if they don’t. There’s loads of online resources which can adequately guide you through this process.
Seek advice immediately if you’re experiencing financial trouble
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without understanding that there are several options available to them to enhance their financial wellbeing.
If you’re experiencing any financial anguish, 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 to Bankruptcy Experts Newcastle on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsnewcastle.com.au