The New Year is obviously an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions address issues like being healthier, boosting their career, or improving their financial position. Now all of us understand how challenging it can be to stick to our New Year’s resolutions, so it is necessary that you make realistic, obtainable goals that can be accomplished with a certain degree of tenacity and self-control.
If you’ve made up your mind that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To attain meaningful financial improvements in your life, it’s important that you focus on the things you can control and to review your progress continually. To give you some ideas on the best ways to do this, the following outlines some recommendations that you should follow if you wish to enhance your financial well-being in the upcoming year.
Set clear financial goals
Studies reveal that merely writing down goals considerably increases the likelihood of you achieving them. In a financial sense, writing down specific goals with an anticipated timeline not only increases the chances of you achieving these goals, but you’ll also understand what is most important to you.
Several financial goals, for instance retirement, may require the guidance of a financial planner, but there are many straightforward, obtainable goals that you can plan on your own, like buying a car, saving for a home deposit, or organising an emergency fund for a rainy day. Itis critical 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
Lot of people aren’t sure how much money they save annually, so it is very important that you specify an actual dollar amount that you want to save for the following year. Regardless if 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 part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government payments), or organise 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 overall financial health.
Track your spending
Understanding just how much you spend each month is crucial in being able 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 great apps that monitor your spending on the go, providing you with a precise indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and reliable tool that helps you realise your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are lots of other apps available, so don’t be afraid to test a few to find which is best for you.
Examine your mortgage and insurance policies
Evaluating your home loan and insurance policies is a practical way to increase your savings. For instance, you should be looking at how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and lenders change their policy structures frequently, 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 each year, so it’s absolutely worth the time and effort! If you find a better package elsewhere, don’t hesitate to ask your existing provider to match it, and at the same time, 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 quickly 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 hardship without realising that there are several options available to them to enrich 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 Mildura on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsmildura.com.au