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 address issues like being healthier, developing their career, or improving their finances. Now we all know how challenging it can be to stick to our New Year’s resolutions, so it is essential that you make sensible, obtainable goals that can be accomplished with a certain degree of willpower and self-discipline.
If you’ve elected that you want to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To create meaningful financial improvements in your life, it’s crucial that you focus on the things you can control and to revise your progress frequently. To give you some ideas on how to do this, the following outlines some recommendations that you should follow if you aspire to enhance your financial well-being in the following year.
Set clear financial goals
Studies have revealed that merely writing down goals significantly increases the probability of you achieving them. In a monetary sense, writing down exact goals with an anticipated timeline not only increases the chances of you reaching these goals, but you’ll additionally 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 simple, plausible goals that you can plan by yourself, such as purchasing a car, saving for a home deposit, or putting together an emergency fund for a rainy day. It is very important that you take small steps to accomplish these goals, and examining your progress regularly is the key to success.
Increase your savings
Most people don’t know how much money they save annually, so itis critical that you stipulate an actual dollar amount that you want to save for the forthcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re setting 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 payments), or schedule an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will increase your net worth and long-term financial health.
Track your spending
Understanding just how much you spend every month is crucial 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 number of wonderful apps that keep track of your spending on the go, giving you a precise indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible 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 suit you, there are plenty of other apps available, so don’t be afraid to test a couple to see which is best for you.
Review your home loan and insurance policies
Revising your home loan and insurance policies is a reliable way to increase your savings. For instance, you should be inspecting how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders modify their policy structures frequently, so chances are you can get a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s clearly worth the effort! If you find a better package elsewhere, don’t be afraid to ask your existing provider to match it, and likewise, 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 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 problems without understanding that there are plenty 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 regarding your financial predicament, don’t hesitate to talk with Bankruptcy Experts Gosford on 1300 795 575, or visit our website for more information: www.bankruptcyexpertsgosford.com.au