New Year’s Resolution – Improving your Financial Health
The New Year is definitely an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions concentrate on being healthier, boosting their career, or improving their finances. Now most of us know how difficult it can be to keep our New Year’s resolutions, so it is essential that you make reasonable, attainable goals that can be accomplished with a specific degree of dedication and self-control.
If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning required. To create considerable financial improvements in your life, it’s necessary that you focus on the things you can control and to review your progress frequently. To give you some ideas on how to do this, the following outlines some recommendations that you should follow if you wish to enhance your financial well-being in the coming year.
Set clear financial goals
Research have shown that simply writing down goals markedly increases the chances of you accomplishing them. In a financial sense, writing down precise goals with an expected timeline not only increases the chances of you reaching these goals, but you’ll likewise understand what is most important to you.
Some financial goals, such as retirement, may require the help of a financial planner, but there are many basic, conceivable goals that you can arrange on your own, such as purchasing a car, saving for a home deposit, or building an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and assessing your progress regularly is the key to success.
Increase your savings
The majority of people don’t know how much money they save every year, so it’s important that you establish an actual dollar amount that you want to save for the upcoming year. Regardless of whether you accomplish this goal or not isn’t the issue, the fact that you’re setting 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 payments (and possibly Government payments), or established 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 just how much you spend every month is vital in being able 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 few excellent apps that keep track of your spending on the go, providing you with an exact indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and reliable tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t satisfy you, there are lots of other apps available, so don’t hesitate to test a couple to see which is best for you.
Review your mortgage and insurance policies
Revising your home loan and insurance policies is a practical way to increase your savings. For instance, you should be examining how your current home loan and insurance policies measure up to other providers on an annual basis. Banks and financial institutions adjust their policy structures frequently, 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 annually, so it’s certainly worth the time and effort! If you find a better package 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 lots of online resources which can effectively 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 problems without understanding that there are a number of options available to them to improve their financial wellbeing.
If you’re experiencing any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to speak with Bankruptcy Experts Geelong on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsgeelong.com.au