The New Year is unquestionably an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around being healthier, boosting their career, or improving their financial position. Now all of us know how challenging it can be to keep our New Year’s resolutions, so it is necessary that you make reasonable, obtainable goals that can be accomplished with a certain degree of determination and self-control.
If you’ve elected that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation involved. To enjoy meaningful financial improvements in your life, it’s necessary that you focus on the things you can control and to assess your progression continually. To give you some insight on the best ways to do this, the following outlines some recommendations that you should follow if you aspire to enhance your financial well-being in the coming year.
Set clear financial goals
Studies indicates that simply writing down goals noticeably increases the chances of you reaching them. In a monetary sense, writing down exact goals with an expected timeline not only increases the likelihood of you reaching these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, for example retirement, may necessitate the guidance of a financial planner, but there are many straightforward, feasible goals that you can plan on your own, for instance purchasing a vehicle, saving for a home deposit, or putting together an emergency fund for a rainy day. Itis critical that you take small steps to achieve these goals, and assessing your progression on a regular basis is the key to success.
Increase your savings
Lots of people aren’t sure how much money they save every year, so it is crucial that you stipulate an actual dollar amount that you wish to save for the following year. Regardless if you achieve this goal or not isn’t the issue, the fact that you’re creating 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 payments (and possibly Government contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will enhance your net worth and long-term financial health.
Track your spending
Understanding how much you spend each month is essential in being able 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 keep track of your spending on the go, providing you with an accurate indication of how much you’re spending with very little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and reliable tool that helps you understand your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t satisfy you, there are a number of other apps out there, so don’t hesitate to test a few to find which is best for you.
Revise your home loan and insurance policies
Evaluating your mortgage and insurance policies is a practical way to increase your savings. For example, you should be inspecting how your current home loan and insurance policies compare to other providers on an annual basis. Lenders change their policy structures regularly, so chances are you can obtain a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s absolutely worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and equally, don’t hesitate to switch providers if they don’t. There’s an abundance of online resources which can successfully guide you through this process.
Seek advice as soon as possible 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 turmoil without realising that there are plenty of options available to them to improve their financial wellbeing.
If you’re experiencing any financial distress, 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 reach out to Bankruptcy Experts Cairns on 1300 795 575, or visit our website for further information: www.bankruptcyexpertscairns.com.au