The New Year is undoubtedly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on getting healthier, developing their career, or improving their financial health. Now we all know how difficult it can be to stick to our New Year’s resolutions, so it is necessary that you make sensible, attainable goals that can be accomplished with a specific degree of willpower and self-discipline.
If you’ve made up your mind that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning involved. To enjoy considerable financial improvements in your life, it’s necessary that you concentrate on the things you can control and to evaluate your progression often. To give you some insight on effective ways to do this, the following outlines some recommendations that you should follow if you aspire to enhance your financial well-being in the upcoming year.
Set clear financial goals
Studies have shown that merely writing down goals considerably increases the chances of you achieving them. In a monetary sense, writing down distinct goals with an anticipated timeline not only increases the probability of you realising these goals, but you’ll likewise understand what is most important to you.
Some financial goals, such as retirement, may require the help of a financial planner, but there are many practical, conceivable goals that you can plan by yourself, for instance buying a car, saving for a home deposit, or creating an emergency fund for a rainy day. It is crucial that you take small steps to achieve these goals, and assessing your progress on a regular basis is the key to success.
Increase your savings
Many people aren’t sure how much money they save each year, so it is crucial that you establish an actual dollar amount that you wish to save for the following year. Regardless if you achieve 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 aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or established 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 overall financial health.
Track your spending
Understanding just how much you spend every month is pivotal in being able to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a couple of excellent apps that keep track of your spending on the go, giving you 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 understand 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 on the market, so don’t be afraid to test a few to see which is best for you.
Examine your home loan and insurance policies
Evaluating your mortgage and insurance policies is an excellent way to increase your savings. For instance, you should be checking how your current home loan and insurance policies compare with other providers on an annual basis. Banks and financial institutions adjust their policy structures regularly, so chances are you can receive 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 most certainly worth the time and effort! If you find a better package somewhere else, don’t hesitate to ask your existing provider to match it, and at the same time, don’t hesitate to switch providers if they don’t. There’s an abundance of online resources which can proficiently 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. Many people suffer through years of stress from financial hardship without understanding that there are a number of options available to them to enhance 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 pertaining to your financial predicament, don’t hesitate to speak with Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsportmacquarie.com.au