|January 19, 2018||0|
The New Year is undoubtedly an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions concentrate on being healthier, improving their career, or improving their finances. Now we all realise how difficult it can be to stick to our New Year’s resolutions, so it is essential that you make practical, attainable goals that can be achieved with a specific degree of tenacity and self-discipline.
If you’ve determined that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To realise meaningful financial improvements in your life, it’s important that you concentrate on the things you can control and to evaluate your progress on a regular basis. To give you some insight on the best ways to do this, the following details some suggestions that you should follow if you choose to improve your financial well-being in the forthcoming year.
Set clear financial goals
Studies have shown that simply writing down goals significantly increases the likelihood of you accomplishing them. In a monetary 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.
Some financial goals, such as retirement, may necessitate the guidance of a financial planner, but there are many basic, feasible goals that you can arrange by yourself, for example buying a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and reviewing your progress often is the key to success.
Increase your savings
Many people aren’t sure how much money they save annually, so it is crucial that you set an actual dollar amount that you want to save for the coming year. Regardless if you achieve 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 part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), or schedule 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 overall financial health.
Track your spending
Understanding how much you spend every 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 few terrific apps that keep track of your spending on the go, giving you a detailed indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and effective 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 fit you, there are many other apps out there, so don’t hesitate to test a couple to discover which is best for you.
Revise your mortgage and insurance policies
Assessing your mortgage and insurance policies is a reliable way to increase your savings. For example, you should be checking how your current home loan and insurance policies compare to other providers on an annual basis. Financial institutions change their policy structures regularly, 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 certainly worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and likewise, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can adequately guide you through this process.
Seek advice immediately if you’re experiencing financial turmoil
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial problems without realising that there are a number of options available to them to enhance their financial wellbeing.
If you’re experiencing any financial grief, 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 get in touch with Bankruptcy Cassowary Coast on 1300 818 575, or visit our website for further information: http://www.bankruptcy-cassowarycoast.com.au/