The New Year is unquestionably a great time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions revolve around becoming healthier, enhancing their career, or improving their financial health. Now all of us understand how tough it can be to stick to our New Year’s resolutions, so it is necessary that you make sensible, obtainable goals that can be accomplished with a specific degree of determination and discipline.
If you’ve made up your mind that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To attain considerable financial improvements in your life, it’s necessary that you address only the things you can control and to assess your progress often. To give you some insight on how you can do this, the following outlines some suggestions that you should follow if you want to enhance your financial well-being in the upcoming year.
Set clear financial goals
Research have shown that merely writing down goals significantly increases the likelihood of you achieving them. In a monetary sense, writing down precise goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll also understand what is most important to you.
Several financial goals, for instance retirement, may require the assistance of a financial planner, but there are many straightforward, obtainable goals that you can arrange by yourself, such as purchasing 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 revising your progress regularly is the key to success.
Increase your savings
Lot of people aren’t sure how much money they save each year, so it is very important that you specify an actual dollar amount that you aspire to save for the following year. Regardless of whether you accomplish this goal or not isn’t the point, the fact that you’re creating specific goals and planning ways to achieve 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 arrange 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 general financial health.
Track your spending
Understanding how much you spend every month is essential in having the ability 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 fantastic apps that monitor your spending on the go, providing you with a precise indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t satisfy you, there are numerous other apps on the market, so don’t be afraid to test a few to find which is best for you.
Examine your mortgage and insurance policies
Examining your mortgage and insurance policies is a practical way to increase your savings. For instance, you should be checking how your current home loan and insurance policies compare with other providers on an annual basis. Banks and financial institutions adjust 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 clearly worth the time and effort! If you find a better package somewhere else, don’t hesitate to ask your existing provider to match it, and similarly, don’t hesitate to switch providers if they don’t. There’s lots of online resources which can effectively guide you through this process.
Seek advice without delay if you’re experiencing financial distress
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many people suffer through years of stress from financial hardship 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 pertaining to your financial predicament, don’t hesitate to get in contact with Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website for additional information: Bankruptcy Rockhampton