|January 19, 2018||0|
The New Year is unquestionably a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions centre around becoming healthier, enhancing their career, or improving their financial circumstances. Now we all realise how tough it can be to keep our New Year’s resolutions, so it is necessary that you make realistic, attainable goals that can be accomplished with a specific degree of tenacity and discipline.
If you’ve elected that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To enjoy considerable financial improvements in your life, it’s important that you focus on the things you can control and to evaluate your progress frequently. To give you some insight on how you can do this, the following details some recommendations that you should follow if you wish to enhance your financial well-being in the forthcoming year.
Set clear financial goals
Studies have indicated that simply writing down goals substantially increases the probability of you reaching them. In a monetary sense, writing down detailed goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll likewise understand what is most important to you.
Several financial goals, for instance retirement, may necessitate the guidance of a financial planner, but there are many simple, obtainable goals that you can arrange by yourself, like buying a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It is essential that you take small steps to achieve these goals, and revising your progression regularly is the key to success.
Increase your savings
Lots of people don’t know 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 upcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re setting specific goals and planning ways to accomplish 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. 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 critical in having the ability to increase your financial health. Keeping every bill and receipt and manually developing a spreadsheet is one way to do it, but there are a couple of fantastic apps that keep track of your spending on the go, giving you an accurate indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and effective tool that helps you realise your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are lots of other apps out there, so don’t be afraid to test a couple to discover which is best for you.
Examine your mortgage and insurance policies
Assessing your home loan and insurance policies is an effective way to increase your savings. For example, you should be examining how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions change their policy structures frequently, 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 each year, so it’s absolutely worth the time and effort! If you find a better package somewhere else, don’t be afraid to ask your existing provider to match it, and equally, don’t be afraid to change 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 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 encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial situation, don’t hesitate to reach out to Bankruptcy Dubbo on 1300 818 575, or visit our website for further information: http://www.bankruptcy-dubbo.com.au/