New Year’s Resolution – Improving your Financial Health
The New Year is obviously a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around getting healthier, strengthening their career, or improving their financial position. Now all of us understand 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 accomplished with a certain degree of persistence and self-control.
If you’ve elected that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To realise significant financial improvements in your life, it’s critical that you concentrate on the things you can control and to evaluate your progress routinely. To give you some insight on how to do this, the following details some suggestions that you should follow if you choose to enhance your financial well-being in the following year.
Set clear financial goals
Research reveal that simply writing down goals noticeably increases the likelihood of you accomplishing them. In a monetary sense, writing down exact goals with an expected timeline not only increases the likelihood of you accomplishing these goals, but you’ll likewise understand what is most important to you.
Some financial goals, for instance retirement, may require the support of a financial planner, but there are many simple, obtainable goals that you can plan on your own, for instance 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 achieve these goals, and assessing your progression often is the key to success.
Increase your savings
The majority of people have no idea how much money they save annually, so it is crucial that you assign an actual dollar amount that you hope to save for the coming year. Regardless if you achieve this goal or not isn’t the issue, 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 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 just how much you spend each month is pivotal 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 a number of fantastic apps that track your spending on the go, providing you with a true indication of how much you’re spending with minimal effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and effective tool that helps you understand your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are lots of other apps available, so don’t be afraid to test a few to find which is best for you.
Examine your mortgage and insurance policies
Assessing your mortgage and insurance policies is a reliable way to increase your savings. For example, you should be examining how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and lenders change their policy structures all the time, so chances are you can get 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 absolutely worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your current provider to match it, and similarly, don’t be afraid to switch providers if they don’t. There’s an abundance of online resources which can successfully guide you through this process.
Seek advice quickly if you’re experiencing financial hardshp
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial distress without realising that there are plenty 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 circumstances, don’t hesitate to talk to Bankruptcy Experts Tamworth on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertstamworth.com.au