The New Year is obviously an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions revolve around being healthier, boosting their career, or improving their financial position. Now all of us know how tough it can be to keep our New Year’s resolutions, so it is vital that you make reasonable, obtainable goals that can be achieved with a specific degree of determination and self-discipline.
If you’ve come to a decision that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To create meaningful financial improvements in your life, it’s integral that you concentrate on the things you can control and to evaluate your progress often. To give you some ideas on the best ways to do this, the following details some recommendations that you should follow if you want to improve your financial well-being in the coming year.
Set clear financial goals
Studies indicates that simply writing down goals greatly increases the chances of you reaching them. In a financial sense, writing down exact goals with an expected timeline not only increases the chances of you realising these goals, but you’ll also understand what is most important to you.
A number of financial goals, for example retirement, may necessitate the guidance of a financial planner, but there are many basic, obtainable goals that you can plan on your own, for instance buying a car, saving for a home deposit, or building an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and evaluating your progression on a regular basis is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save annually, so itis critical that you set an actual dollar amount that you aspire to save for the following year. Whether you achieve this goal or not isn’t the issue, 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 contributions (and possibly Government contributions), or organise 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 long-term financial health.
Track your spending
Understanding how much you spend each month is integral in being able to increase your financial health. Keeping every bill and receipt and manually generating a spreadsheet is one way to do it, but there are a few terrific apps that track your spending on the go, giving you a true indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and effective tool that helps you realise your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are numerous other apps on the market, so don’t hesitate to test a few to see which is best for you.
Assess your mortgage and insurance policies
Assessing your home loan and insurance policies is a practical way to increase your savings. For instance, you should be inspecting how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and lenders modify their policy structures frequently, so chances are you can obtain a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s most definitely worth the effort! If you find a better package elsewhere, don’t hesitate to ask your current 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 translate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial problems without realising that there are several 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 get in contact with Bankruptcy Experts Frankston on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsfrankston.com.au