The New Year is undoubtedly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions concentrate on becoming healthier, improving their career, or improving their finances. Now most of us recognise how difficult it can be to keep our New Year’s resolutions, so it is necessary that you make reasonable, obtainable goals that can be achieved with a certain degree of tenacity and self-discipline.
If you’ve made up your mind that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning involved. To enjoy meaningful financial improvements in your life, it’s integral that you focus on the things you can control and to evaluate your progression frequently. To give you some ideas on how you can do this, the following outlines some suggestions that you should follow if you aspire to improve your financial well-being in the forthcoming year.
Set clear financial goals
Research have indicated that simply writing down goals substantially increases the likelihood of you achieving them. In a monetary sense, writing down precise goals with an expected timeline not only increases the chances of you accomplishing these goals, but you’ll also understand what is most important to you.
A number of financial goals, for example retirement, may require the guidance of a financial planner, but there are many straightforward, conceivable goals that you can plan by yourself, such as purchasing a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and assessing your progress often is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save each year, so it is crucial that you specify an actual dollar amount that you wish to save for the upcoming year. Regardless if you reach this goal or not isn’t the issue, the fact that you’re creating specific goals and planning ways to reach 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 schedule an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will increase your net worth and general financial health.
Track your spending
Understanding how much you spend every month is integral in having the ability 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 wonderful apps that monitor your spending on the go, providing you with an exact indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient 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 suit you, there are lots of other apps out there, so don’t be afraid to test a few to find which is best for you.
Review your mortgage and insurance policies
Evaluating your mortgage and insurance policies is an excellent way to increase your savings. For instance, you should be reviewing how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders change their policy structures regularly, so chances are you can receive 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 absolutely worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your current provider to match it, and equally, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can effectively guide you through this process.
Seek advice as soon as possible if you’re experiencing financial turmoil
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial troubles without realising that there are a number of options available to them to improve their financial wellbeing.
If you’re encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial predicament, don’t hesitate to talk to Bankruptcy Experts Gold Coast on 1300 879 867, or visit our website for additional information: www.bankruptcyexpertsgoldcoast.com.au