The New Year is most certainly an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions focus on being healthier, strengthening their career, or improving their finances. Now we all recognise how challenging it can be to keep our New Year’s resolutions, so it’s important that you make sensible, attainable goals that can be achieved with a specific degree of determination and self-discipline.
If you’ve determined that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To develop significant financial improvements in your life, it’s crucial that you focus on the things you can control and to assess your progression on a regular basis. To give you some ideas on how you can do this, the following details some recommendations that you should follow if you choose to improve your financial well-being in the upcoming year.
Set clear financial goals
Studies reveal that simply writing down goals considerably increases the chances of you accomplishing them. In a monetary sense, writing down specific goals with an anticipated timeline not only increases the probability of you achieving these goals, but you’ll likewise understand what is most important to you.
Some financial goals, such as retirement, may necessitate the help of a financial planner, but there are many straightforward, obtainable goals that you can arrange on your own, like buying a vehicle, saving for a home deposit, or organising an emergency fund for a rainy day. It is crucial that you take small steps to achieve these goals, and assessing your progress frequently is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save each year, so itis critical that you stipulate an actual dollar amount that you aspire to save for the following year. Regardless if you accomplish this goal or not isn’t the issue, the fact that you’re setting specific goals and planning ways to achieve 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 set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will increase your net worth and long-term financial health.
Track your spending
Understanding how much you spend every month is vital in having the capacity to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are some excellent apps that keep track of your spending on the go, giving you a precise indication of how much you’re spending with minimal effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy 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 satisfy you, there are many other apps available, so don’t be afraid to test a couple to see which is best for you.
Examine your home loan and insurance policies
Assessing your mortgage and insurance policies is an effective way to increase your savings. For instance, you should be looking at how your current mortgage and insurance policies compare with other providers on an annual basis. Lenders change their policy structures all the time, 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 annually, so it’s absolutely worth the time and effort! If you find a better package somewhere else, don’t hesitate to ask your current provider to match it, and in the same manner, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can thoroughly guide you through this process.
Seek advice immediately if you’re experiencing financial trouble
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial hardship without understanding that there are several options available to them to boost their financial wellbeing.
If you’re encountering any financial anguish, 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 speak to Bankruptcy Experts Hobart on 1300 795 575, or visit our website for further information: www.bankruptcyexpertshobart.com.au