The New Year is obviously an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions centre around getting healthier, improving their career, or improving their financial circumstances. Now most of us know how challenging it can be to stick to our New Year’s resolutions, so it is vital that you make sensible, attainable goals that can be achieved with a certain degree of willpower and discipline.
If you’ve come to a decision that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To develop significant financial improvements in your life, it’s necessary that you concentrate on the things you can control and to assess your progress often. To give you some ideas on how to do this, the following details some recommendations that you should follow if you choose to enhance your financial well-being in the following year.
Set clear financial goals
Studies have revealed that simply writing down goals significantly increases the probability of you reaching them. In a monetary sense, writing down specific goals with an anticipated timeline not only increases the likelihood of you reaching these goals, but you’ll also understand what is most important to you.
Certain financial goals, for instance retirement, may necessitate the services of a financial planner, but there are many straightforward, feasible goals that you can plan by yourself, such as buying a vehicle, saving for a home deposit, or organising an emergency fund for a rainy day. It is crucial that you take small steps to reach these goals, and examining your progress regularly is the key to success.
Increase your savings
Lots of people have no idea how much money they save annually, so it is very important that you specify an actual dollar amount that you want to save for the coming year. Whether you achieve this goal or not isn’t the point, 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 contributions (and possibly Government contributions), or arrange an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will bolster your net worth and general financial health.
Track your spending
Understanding how much you spend each 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 some 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 trusted and reliable tool that helps you understand your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are plenty of other apps on the market, so don’t be afraid to test a few to see which is best for you.
Evaluate your mortgage and insurance policies
Evaluating your home loan and insurance policies is an excellent way to increase your savings. For example, you should be assessing how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and financial institutions adjust their policy structures all the time, 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 every year, so it’s most certainly 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 in the same manner, don’t be afraid to switch providers if they don’t. There’s plenty of online resources which can successfully guide you through this process.
Seek advice immediately if you’re experiencing financial hardship
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without understanding that there are several options available to them to improve 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 circumstances, don’t hesitate to talk with Bankruptcy Experts Northern Rivers on 1300 795 575, or visit our website for additional information: Bankruptcy Northern Rivers