The New Year is obviously an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions concentrate on becoming healthier, improving their career, or improving their financial position. Now we all appreciate how challenging it can be to stick to our New Year’s resolutions, so it is necessary that you make reasonable, obtainable goals that can be achieved with a specific degree of tenacity and self-discipline.
If you’ve come to a decision that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning required. To attain significant financial improvements in your life, it’s vital that you address only the things you can control and to evaluate your progression continously. To give you some insight on how you can do this, the following details some recommendations that you should follow if you aspire to enhance your financial well-being in the coming year.
Set clear financial goals
Studies have indicated that merely writing down goals greatly increases the chances of you accomplishing them. In a financial sense, writing down exact goals with an anticipated timeline not only increases the chances of you reaching these goals, but you’ll likewise understand what is most important to you.
A number of financial goals, like retirement, may require the guidance of a financial planner, but there are many basic, obtainable goals that you can plan on your own, for example purchasing a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is crucial that you take small steps to achieve these goals, and examining your progression on a regular basis is the key to success.
Increase your savings
Many people aren’t sure how much money they save each year, so it’s important that you specify an actual dollar amount that you hope to save for the coming year. Regardless of whether you reach this goal or not isn’t the issue, the fact that you’re creating 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 contributions (and possibly Government contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding just how much you spend every month is crucial in having the ability to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a number of fantastic apps that track your spending on the go, providing you with a true indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and dependable 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 fit you, there are lots of other apps on the market, so don’t be afraid to test a few to find which is best for you.
Revise your home loan and insurance policies
Revising your mortgage and insurance policies is an excellent way to increase your savings. For example, you should be checking how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and lenders modify their policy structures regularly, 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 annually, so it’s clearly worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and likewise, don’t be afraid to switch providers if they don’t. There’s plenty of online resources which can adequately guide you through this process.
Seek advice quickly if you’re experiencing financial hardship
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 understanding that there are several options available to them to improve 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 relating to your financial circumstances, don’t hesitate to get in contact with Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website for more information: www.bankruptcyexpertssunshinecoast.com.au