New Year’s Resolution – Improving your Financial Health
The New Year is unquestionably a great time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions centre around becoming healthier, improving their career, or improving their financial position. Now all of us appreciate how challenging it can be to stick to our New Year’s resolutions, so it’s important that you make reasonable, attainable goals that can be accomplished with a certain degree of dedication 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 planning and preparation required. To achieve significant financial improvements in your life, it’s vital that you concentrate on the things you can control and to assess your progress on a regular basis. To give you some insight on how you can do this, the following details some suggestions that you should follow if you wish to enhance your financial well-being in the upcoming year.
Set clear financial goals
Studies indicates that simply writing down goals greatly increases the chances of you accomplishing them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the probability of you realising these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, like retirement, may necessitate the guidance of a financial planner, but there are many basic, plausible goals that you can plan on your own, such as buying a vehicle, saving for a home deposit, or building an emergency fund for a rainy day. It is essential that you take small steps to accomplish these goals, and examining your progress often is the key to success.
Increase your savings
Many people aren’t sure how much money they save every year, so it is essential that you set an actual dollar amount that you wish to save for the forthcoming year. Regardless if you achieve this goal or not isn’t the point, the fact that you’re specifying 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. Irrespective of how you do this, 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 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 a number of fantastic apps that track your spending on the go, giving you 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 reputable and reliable tool that helps you understand your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are many other apps out there, so don’t hesitate to test a couple to discover which is best for you.
Evaluate your home loan and insurance policies
Evaluating your home loan 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. Financial institutions modify their policy structures frequently, so chances are you can receive a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars each year, so it’s clearly worth the effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and in the same manner, don’t be afraid to switch providers if they don’t. There’s loads of online resources which can thoroughly guide you through this process.
Seek advice without delay if you’re experiencing financial distress
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial turmoil without understanding that there are a number of options available to them to boost their financial wellbeing.
If you’re encountering any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice pertaining to your financial situation, don’t hesitate to speak to Bankruptcy Experts Australia on 1300 795 575, or visit our website for further information: Bankruptcy Australia