The New Year is unquestionably an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions revolve around becoming healthier, enhancing their career, or improving their financial position. Now we all recognise how difficult it can be to keep our New Year’s resolutions, so it is necessary that you make realistic, attainable goals that can be achieved with a specific degree of willpower and self-control.
If you’ve elected that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To achieve considerable financial improvements in your life, it’s critical that you address only the things you can control and to examine your progression continually. To give you some ideas on the best ways to do this, the following outlines some suggestions that you should follow if you wish to improve your financial well-being in the upcoming year.
Set clear financial goals
Studies have shown that simply writing down goals significantly increases the chances of you reaching them. In a financial sense, writing down precise goals with an expected timeline not only increases the likelihood of you achieving these goals, but you’ll likewise understand what is most important to you.
Some financial goals, for instance retirement, may require the services of a financial planner, but there are many simple, achievable goals that you can arrange by yourself, for example buying 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 revising your progress often is the key to success.
Increase your savings
Many people aren’t sure how much money they save every year, so it is crucial that you establish an actual dollar amount that you hope to save for the following year. Whether you reach this goal or not isn’t the point, the fact that you’re setting 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 set up an automatic deposit into an emergency fund or high interest savings account each week. Irrespective 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 every 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 some terrific apps that keep track of your spending on the go, providing you with a precise indication of how much you’re spending with minimal effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and effective 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 out there, so don’t be afraid to test a few to discover which is best for you.
Assess your home loan and insurance policies
Assessing your home loan and insurance policies is an effective way to increase your savings. For instance, you should be evaluating how your current home loan and insurance policies measure up to other providers on an annual basis. Lenders adjust their policy structures frequently, 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 each year, so it’s unquestionably worth the time and effort! If you find a better offer somewhere else, don’t hesitate to ask your current provider to match it, and equally, don’t hesitate to change providers if they don’t. There’s plenty of online resources which can successfully guide you through this process.
Seek advice as soon as possible if you’re experiencing financial trouble
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 realising that there are plenty of options available to them to enrich their financial wellbeing.
If you’re encountering any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial circumstances, don’t hesitate to reach out to Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertscoffsharbour.com.au