New Year’s Resolution – Improving your Financial Health
The New Year is certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions revolve around getting healthier, boosting their career, or improving their finances. Now all of us realise how challenging it can be to stick to our New Year’s resolutions, so it’s important that you make practical, attainable goals that can be achieved with a certain degree of persistence and discipline.
If you’ve determined that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To achieve significant financial improvements in your life, it’s critical that you concentrate on the things you can control and to assess your progression routinely. To give you some ideas on how to do this, the following outlines some recommendations that you should follow if you aspire to improve your financial well-being in the coming year.
Set clear financial goals
Research have revealed that merely writing down goals considerably increases the probability of you accomplishing them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the likelihood of you realising these goals, but you’ll also understand what is most important to you.
A number of financial goals, such as retirement, may necessitate the assistance of a financial planner, but there are many basic, plausible goals that you can arrange on your own, such as purchasing a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is vital that you take small steps to reach these goals, and assessing your progress often is the key to success.
Increase your savings
Most individuals don’t know how much money they save every year, so it is vital that you stipulate an actual dollar amount that you aspire to save for the forthcoming year. Regardless if you achieve this goal or not isn’t the issue, the fact that you’re specifying specific goals and planning ways to accomplish these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is vital in having the capacity 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 fantastic apps that track your spending on the go, providing you with a true indication of how much you’re spending with very little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and efficient tool that helps you realise your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are many other apps available, so don’t hesitate to test a couple to find which is best for you.
Evaluate your home loan and insurance policies
Revising your mortgage and insurance policies is an excellent way to increase your savings. For instance, you should be assessing how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and financial institutions adjust their policy structures regularly, so chances are you can acquire 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 clearly worth the effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and likewise, don’t hesitate to switch providers if they don’t. There’s loads of online resources which can adequately guide you through this process.
Seek advice without delay if you’re experiencing financial hardshp
Improving your financial health doesn’t always correspond 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 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 relating to your financial circumstances, don’t hesitate to talk with Bankruptcy Experts Wollongong on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertswollongong.com.au