The New Year is undoubtedly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions address issues like becoming healthier, boosting their career, or improving their financial health. Now we all know how challenging it can be to stick to our New Year’s resolutions, so it’s important that you make realistic, obtainable goals that can be achieved with a certain degree of tenacity and self-discipline.
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 achieve meaningful financial improvements in your life, it’s critical that you address only the things you can control and to revise your progression often. To give you some ideas on effective ways to do this, the following outlines some suggestions that you should follow if you choose to improve your financial well-being in the following year.
Set clear financial goals
Research reveal that merely writing down goals substantially increases the likelihood of you reaching them. In a monetary sense, writing down distinct goals with an expected timeline not only increases the chances of you achieving these goals, but you’ll also understand what is most important to you.
Some financial goals, for example retirement, may necessitate the help of a financial planner, but there are many basic, plausible goals that you can plan on your own, for instance buying a vehicle, saving for a home deposit, or putting together an emergency fund for a rainy day. It’s important that you take small steps to accomplish these goals, and assessing your progress on a regular basis is the key to success.
Increase your savings
Most individuals don’t know how much money they save every year, so itis critical that you set an actual dollar amount that you aspire to save for the upcoming year. 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 part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or organise 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 each month is essential 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 fantastic apps that monitor your spending on the go, providing you with a true indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and reliable tool that helps you understand your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t suit you, there are plenty of other apps available, so don’t hesitate to test a couple to find which is best for you.
Review your home loan and insurance policies
Revising your home loan and insurance policies is an effective way to increase your savings. For instance, you should be examining how your current mortgage and insurance policies compare with other providers on an annual basis. Banks and lenders modify their policy structures regularly, 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 every year, so it’s certainly worth the time and effort! If you find a better offer somewhere else, don’t be afraid to ask your current provider to match it, and likewise, don’t hesitate to change providers if they don’t. There’s plenty of online resources which can proficiently guide you through this process.
Seek advice without delay if you’re experiencing financial turmoil
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial turmoil without understanding that there are plenty of options available to them to enhance 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 pertaining to your financial predicament, don’t hesitate to get in touch with Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsalicesprings.com.au