The New Year is unquestionably an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions centre around getting healthier, improving their career, or improving their finances. Now we all recognise how difficult it can be to stick to our New Year’s resolutions, so it is essential that you make realistic, attainable goals that can be accomplished with a specific degree of persistence and self-discipline.
If you’ve decided that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning involved. To realise significant financial improvements in your life, it’s essential that you address only the things you can control and to review your progress frequently. To give you some insight on effective ways to do this, the following outlines some recommendations that you should follow if you choose to improve your financial well-being in the following year.
Set clear financial goals
Studies have revealed that merely writing down goals considerably increases the probability of you accomplishing them. In a financial sense, writing down specific 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.
Some financial goals, like retirement, may necessitate the assistance of a financial planner, but there are many basic, plausible goals that you can arrange by yourself, like purchasing a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and revising your progression regularly is the key to success.
Increase your savings
The majority of people aren’t sure how much money they save annually, so it’s important that you stipulate an actual dollar amount that you want to save for the coming year. Whether you accomplish this goal or not isn’t the point, 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 payments (and possibly Government payments), 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 bolster your net worth and general financial health.
Track your spending
Understanding how much you spend every month is integral 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 a couple of excellent apps that keep track of your spending on the go, providing you with a detailed indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and effective tool that helps you understand your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are lots of other apps available, so don’t be afraid to test a couple to find which is best for you.
Examine your mortgage and insurance policies
Evaluating your mortgage and insurance policies is a useful way to increase your savings. For example, you should be inspecting how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions adjust their policy structures all the time, 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 undoubtedly worth the effort! If you find a better offer elsewhere, don’t be afraid to ask your existing provider to match it, and similarly, don’t hesitate to change providers if they don’t. There’s plenty of online resources which can effectively guide you through this process.
Seek advice promptly if you’re experiencing financial distress
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial problems without understanding that there are plenty of options available to them to enrich their financial well being.
If you’re experiencing any financial grief, 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 to Bankruptcy Advice Perth on 1300 879 867, or visit our website for more information: Bankruptcy Perth