The New Year is most certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions focus on being healthier, improving their career, or improving their finances. Now all of us know how challenging it can be to keep our New Year’s resolutions, so it is vital that you make practical, obtainable goals that can be achieved with a specific 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 involved. To realise significant financial improvements in your life, it’s necessary that you concentrate on the things you can control and to examine your progression regularly. To give you some ideas on how you can do this, the following outlines some suggestions that you should follow if you aspire to improve your financial well-being in the forthcoming year.
Set clear financial goals
Studies have indicated that merely writing down goals markedly increases the probability of you reaching them. In a monetary sense, writing down precise goals with an anticipated timeline not only increases the likelihood of you achieving these goals, but you’ll also understand what is most important to you.
A number of financial goals, such as retirement, may necessitate the services of a financial planner, but there are many simple, plausible goals that you can plan on your own, such as buying a car, saving for a home deposit, or setting up an emergency fund for a rainy day. It is very important that you take small steps to achieve these goals, and reviewing your progression frequently is the key to success.
Increase your savings
Lots of people have no idea how much money they save each year, so it is vital that you specify an actual dollar amount that you hope to save for the upcoming year. Whether you achieve this goal or not isn’t the issue, the fact that you’re setting 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 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 bolster your net worth and long-term financial health.
Track your spending
Understanding how much you spend every month is essential 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 couple of terrific apps that keep track of your spending on the go, providing you with a detailed indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and reliable tool that helps you understand your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are plenty of other apps on the market, so don’t be afraid to test a couple to discover which is best for you.
Examine your home loan and insurance policies
Revising your home loan and insurance policies is a useful way to increase your savings. For instance, you should be evaluating how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders change their policy structures regularly, so chances are you can receive 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 most certainly worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and in the same manner, don’t be afraid 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 hardship
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without realising that there are plenty of options available to them to enrich their financial wellbeing.
If you’re encountering any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial predicament, don’t hesitate to get in touch with Bankruptcy Advice on 1300 879 867, or visit our website for more information: Bankrutpcy Advice