The New Year is most certainly an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions centre around getting healthier, developing their career, or improving their financial health. Now all of us recognise how tough it can be to keep our New Year’s resolutions, so it is vital that you make reasonable, obtainable goals that can be achieved with a specific degree of determination and discipline.
If you’ve made a decision that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation involved. To acquire considerable financial improvements in your life, it’s critical that you concentrate on the things you can control and to review your progress on a regular basis. To give you some ideas on how to do this, the following details some suggestions that you should follow if you choose to enhance your financial well-being in the following year.
Set clear financial goals
Research reveal that merely writing down goals considerably increases the probability of you reaching them. In a monetary sense, writing down precise goals with an expected timeline not only increases the likelihood of you reaching these goals, but you’ll also understand what is most important to you.
Several financial goals, for instance retirement, may necessitate the guidance of a financial planner, but there are many straightforward, feasible goals that you can arrange by yourself, for example purchasing 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 reviewing your progression on a regular basis is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save every year, so it’s important that you determine an actual dollar amount that you aspire to save for the following year. Whether you accomplish this goal or not isn’t the point, the fact that you’re setting specific goals and planning ways to accomplish 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 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 bolster your net worth and general financial health.
Track your spending
Understanding how much you spend every month is vital 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 number of fantastic apps that keep track of your spending on the go, giving you a precise indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy 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 fit you, there are plenty of other apps available, so don’t hesitate to test a few to find which is best for you.
Assess your mortgage and insurance policies
Reviewing your mortgage and insurance policies is a reliable way to increase your savings. For instance, you should be looking at how your current mortgage and insurance policies measure up to other providers on an annual basis. Lenders adjust their policy structures regularly, so chances are you can obtain 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 certainly worth the time and 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 hesitate to switch providers if they don’t. There’s loads of online resources which can successfully 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 distress without understanding that there are a number of options available to them to boost 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 regarding your financial predicament, don’t hesitate to get in contact with Bankruptcy Experts Dubbo on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsdubbo.com.au