The New Year is most certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions revolve around getting healthier, improving their career, or improving their financial circumstances. Now most of us appreciate how challenging it can be to keep our New Year’s resolutions, so it is vital that you make sensible, attainable goals that can be accomplished with a certain degree of tenacity and self-discipline.
If you’ve made up your mind that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning required. To attain meaningful financial improvements in your life, it’s essential that you focus on the things you can control and to revise your progress regularly. To give you some insight on how to do this, the following details some recommendations that you should follow if you aspire to improve your financial well-being in the following year.
Set clear financial goals
Research have revealed that merely writing down goals noticeably increases the likelihood of you accomplishing them. In a financial sense, writing down exact goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll also understand what is most important to you.
Some financial goals, like retirement, may require the assistance of a financial planner, but there are many straightforward, obtainable goals that you can arrange on your own, like purchasing a car, saving for a home deposit, or putting together an emergency fund for a rainy day. It is crucial that you take small steps to achieve these goals, and evaluating your progress on a regular basis is the key to success.
Increase your savings
Many people have no idea how much money they save every year, so it’s important that you set an actual dollar amount that you wish to save for the forthcoming year. Regardless of whether you achieve this goal or not isn’t the point, the fact that you’re setting specific goals and planning ways to reach these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or established 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 long-term financial health.
Track your spending
Understanding just how much you spend every month is vital 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 number of terrific apps that keep track of your spending on the go, providing you with a detailed indication of how much you’re spending with very little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and efficient tool that helps you understand your average monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are numerous other apps out there, so don’t hesitate to test a couple to find which is best for you.
Assess your home loan and insurance policies
Revising your mortgage 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 with other providers on an annual basis. Banks and financial institutions modify their policy structures all the time, so chances are you can get 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 clearly worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and equally, don’t be afraid to change providers if they don’t. There’s an abundance of online resources which can proficiently guide you through this process.
Seek advice quickly if you’re experiencing financial trouble
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial troubles without realising that there are plenty of options available to them to enrich 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 regarding your financial situation, don’t hesitate to reach out to Bankruptcy Experts Fremantle on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsfremantle.com.au