The New Year is most certainly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on becoming healthier, improving their career, or improving their financial circumstances. Now most of us recognise how tough it can be to keep our New Year’s resolutions, so it is necessary that you make sensible, attainable goals that can be achieved with a certain degree of persistence and self-control.
If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To acquire meaningful financial improvements in your life, it’s imperative that you concentrate on the things you can control and to review your progression continously. To give you some ideas on how you can do this, the following details some suggestions that you should follow if you choose to improve your financial well-being in the forthcoming year.
Set clear financial goals
Research reveal that merely writing down goals greatly increases the chances of you achieving them. In a financial sense, writing down distinct goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll likewise understand what is most important to you.
A number of financial goals, such as retirement, may require the support of a financial planner, but there are many straightforward, plausible goals that you can arrange by yourself, such as purchasing a car, saving for a home deposit, or setting up an emergency fund for a rainy day. It is vital that you take small steps to reach these goals, and assessing your progression often is the key to success.
Increase your savings
Most people have no idea how much money they save every year, so it is very important that you set an actual dollar amount that you want to save for the upcoming year. Whether you reach 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 aspect.
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 bolster your net worth and overall financial health.
Track your spending
Understanding how much you spend each month is vital 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 number of fantastic apps that monitor your spending on the go, providing you with an accurate indication of how much you’re spending with very little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and effective tool that helps you realise your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t suit 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
Assessing your home loan and insurance policies is a reliable way to increase your savings. For example, you should be inspecting how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders 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 every year, so it’s definitely 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 switch providers if they don’t. There’s plenty of online resources which can proficiently guide you through this process.
Seek advice without delay if you’re experiencing financial distress
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without realising that there are a number of options available to them to boost 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 pertaining to your financial circumstances, don’t hesitate to get in contact with Bankruptcy Experts Rockingham on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsrockingham.com.au