The New Year is definitely an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions address issues like being healthier, enhancing their career, or improving their financial position. Now all of us know how challenging it can be to stick to our New Year’s resolutions, so it is essential that you make realistic, attainable goals that can be achieved with a certain degree of willpower and discipline.
If you’ve made a decision that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To achieve meaningful financial improvements in your life, it’s pivotal that you focus on the things you can control and to evaluate your progress regularly. To give you some insight on how you can do this, the following details some suggestions that you should follow if you choose to improve your financial well-being in the upcoming year.
Set clear financial goals
Research have indicated that simply writing down goals substantially increases the probability of you reaching them. In a monetary sense, writing down precise goals with an anticipated timeline not only increases the likelihood of you achieving these goals, but you’ll additionally understand what is most important to you.
Several financial goals, like retirement, may necessitate the help of a financial planner, but there are many practical, plausible goals that you can plan on your own, for example purchasing a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and assessing your progress on a regular basis is the key to success.
Increase your savings
Lot of people don’t know how much money they save annually, so itis critical that you assign an actual dollar amount that you hope to save for the following year. Regardless if you accomplish this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to accomplish these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (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 just how much you spend each month is crucial in having the capacity to increase your financial health. Keeping every bill and receipt and manually generating a spreadsheet is one way to do it, but there are some terrific apps that keep track of your spending on the go, providing you with a precise indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and reliable 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 satisfy you, there are many other apps out there, so don’t be afraid to test a few to discover which is best for you.
Assess your mortgage and insurance policies
Evaluating your mortgage and insurance policies is an effective way to increase your savings. For example, you should be inspecting how your current mortgage and insurance policies compare with other providers on an annual basis. Banks and lenders adjust their policy structures all the time, so chances are you can acquire a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s most definitely worth the time and effort! If you find a better offer elsewhere, don’t be afraid to ask your current provider to match it, and similarly, don’t be afraid to switch providers if they don’t. There’s plenty of online resources which can proficiently guide you through this process.
Seek advice promptly if you’re experiencing financial turmoil
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial problems without realising that there are several options available to them to enrich their financial well being.
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 circumstances, don’t hesitate to speak with Bankruptcy Experts Dandenong on 1300 795 575, or visit our website for further information: Bankruptcy Dandenong