The New Year is most certainly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions focus on being healthier, boosting their career, or improving their finances. Now we all appreciate how tough it can be to keep our New Year’s resolutions, so it’s important that you make practical, attainable goals that can be achieved with a specific degree of determination and discipline.
If you’ve determined that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To attain significant financial improvements in your life, it’s integral that you concentrate on the things you can control and to evaluate your progress often. To give you some insight on how to do this, the following details some suggestions that you should follow if you want to improve your financial well-being in the upcoming year.
Set clear financial goals
Research reveal that simply writing down goals considerably increases the chances of you accomplishing them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the likelihood of you accomplishing these goals, but you’ll additionally understand what is most important to you.
A number of financial goals, for instance retirement, may necessitate the help of a financial planner, but there are many practical, plausible goals that you can arrange on your own, like purchasing a car, saving for a home deposit, or setting up an emergency fund for a rainy day. It is very important that you take small steps to achieve these goals, and assessing your progress often is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save annually, so itis critical that you establish an actual dollar amount that you want to save for the coming year. Regardless if you accomplish 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 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 enhance your net worth and general financial health.
Track your spending
Understanding just how much you spend every month is crucial 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 some wonderful apps that track your spending on the go, giving you an exact indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible 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 a number of other apps out there, so don’t hesitate to test a few to discover which is best for you.
Assess your mortgage and insurance policies
Reviewing your mortgage and insurance policies is an excellent way to increase your savings. For example, you should be assessing how your current mortgage and insurance policies measure up to other providers on an annual basis. Lenders adjust their policy structures regularly, so chances are you can obtain a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s undoubtedly worth the effort! If you find a better package elsewhere, don’t hesitate to ask your current provider to match it, and equally, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can effectively guide you through this process.
Seek advice without delay if you’re experiencing financial trouble
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Many people suffer through years of stress from financial distress without realising that there are plenty of options available to them to boost their financial wellbeing.
If you’re encountering any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial predicament, don’t hesitate to talk with Bankruptcy Experts Mackay on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsmackay.com.au