New Year’s Resolution – Improving your Financial Health
The New Year is certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions centre around getting healthier, developing their career, or improving their financial circumstances. Now all of us recognise how tough it can be to keep our New Year’s resolutions, so it’s important that you make sensible, obtainable goals that can be achieved with a certain degree of determination and self-control.
If you’ve made a decision that you wish to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To enjoy significant financial improvements in your life, it’s fundamental that you focus on the things you can control and to revise your progress frequently. To give you some ideas on the best ways to do this, the following outlines some suggestions that you should follow if you aspire to improve your financial well-being in the upcoming year.
Set clear financial goals
Research have indicated that simply writing down goals markedly increases the likelihood of you accomplishing them. In a financial sense, writing down distinct goals with an expected timeline not only increases the chances of you accomplishing these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, such as retirement, may require the services of a financial planner, but there are many practical, plausible goals that you can plan on your own, for instance buying a vehicle, saving for a home deposit, or setting up an emergency fund for a rainy day. It is essential that you take small steps to achieve these goals, and evaluating your progression frequently is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save annually, so it is crucial that you establish an actual dollar amount that you aspire to save for the upcoming year. Regardless if you accomplish this goal or not isn’t the issue, the fact that you’re creating specific goals and planning ways to achieve these goals is the most important part.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will increase your net worth and long-term financial health.
Track your spending
Understanding just how much you spend every month is essential 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 few fantastic apps that monitor your spending on the go, giving you a detailed 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 realise your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are a number of other apps on the market, so don’t hesitate to test a few to discover which is best for you.
Revise your home loan and insurance policies
Examining your home loan and insurance policies is an effective way to increase your savings. For instance, you should be assessing how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders adjust their policy structures regularly, so chances are you can acquire 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 certainly worth the time and effort! If you find a better offer elsewhere, don’t be afraid to ask your current provider to match it, and likewise, don’t hesitate to switch providers if they don’t. There’s lots of online resources which can effectively guide you through this process.
Seek advice as soon as possible if you’re experiencing financial hardshp
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial hardship without understanding that there are a number of options available to them to enhance their financial wellbeing.
If you’re encountering any financial anguish, 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 talk to Bankruptcy Experts Melbourne on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsmelbourne.com.au