The New Year is unquestionably a great time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions focus on being healthier, improving their career, or improving their financial position. Now most of us know how tough it can be to stick to our New Year’s resolutions, so it is essential that you make realistic, attainable goals that can be accomplished with a certain degree of dedication and discipline.
If you’ve elected that you want to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To attain meaningful financial improvements in your life, it’s important that you address only the things you can control and to assess your progress on a regular basis. 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 indicates that simply writing down goals markedly increases the chances of you reaching them. In a monetary sense, writing down individual goals with an anticipated timeline not only increases the likelihood of you realising these goals, but you’ll additionally understand what is most important to you.
Some financial goals, for example retirement, may require the support of a financial planner, but there are many straightforward, feasible goals that you can arrange on your own, like buying a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It is vital that you take small steps to accomplish these goals, and assessing your progression on a regular basis is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save annually, so itis critical that you specify an actual dollar amount that you wish to save for the coming year. Whether you achieve this goal or not isn’t the issue, the fact that you’re creating 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 payments (and possibly Government contributions), or established 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 long-term financial health.
Track your spending
Understanding how much you spend each month is pivotal 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 a number of terrific apps that monitor your spending on the go, providing you with a precise indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and effective tool that helps you understand your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are plenty of other apps out there, so don’t hesitate to test a couple to find which is best for you.
Review your mortgage and insurance policies
Evaluating your mortgage and insurance policies is a useful 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. Banks and lenders change their policy structures regularly, 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 annually, so it’s clearly worth the time and effort! If you find a better package somewhere else, don’t hesitate to ask your current provider to match it, and equally, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can successfully guide you through this process.
Seek advice promptly if you’re experiencing financial hardship
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial distress without understanding that there are plenty of options available to them to boost 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 pertaining to your financial predicament, don’t hesitate to get in touch with Bankruptcy Experts Townsville on 1300 795 575, or visit our website for more information: Bankrupt Townsville