|January 19, 2018||0|
The New Year is definitely an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions focus on getting healthier, enhancing their career, or improving their financial circumstances. Now all of us understand how difficult it can be to stick to our New Year’s resolutions, so it is necessary that you make reasonable, attainable goals that can be accomplished with a certain degree of tenacity and self-control.
If you’ve come to a decision that you wish to improve your financial health in 2018, there’s a decent amount of preparation and planning needed. To achieve considerable financial improvements in your life, it’s important that you focus on the things you can control and to assess your progression on a regular basis. To give you some insight on how you can do this, the following outlines some suggestions that you should follow if you choose to enhance your financial well-being in the forthcoming year.
Set clear financial goals
Studies reveal that merely writing down goals noticeably increases the chances of you accomplishing them. In a monetary sense, writing down precise goals with an expected timeline not only increases the likelihood of you achieving these goals, but you’ll likewise understand what is most important to you.
Certain financial goals, such as retirement, may require the assistance of a financial planner, but there are many basic, obtainable 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 very important that you take small steps to achieve these goals, and examining your progression frequently is the key to success.
Increase your savings
Most people have no idea how much money they save each year, so it is very important that you establish an actual dollar amount that you want to save for the forthcoming year. Regardless if you achieve this goal or not isn’t the issue, the fact that you’re creating 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 payments), or set up an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will bolster your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is crucial 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 couple of fantastic apps that keep track of your spending on the go, providing you with a detailed indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable 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 satisfy you, there are many other apps on the market, so don’t be afraid to test a couple to find which is best for you.
Examine your home loan and insurance policies
Revising your mortgage and insurance policies is an effective way to increase your savings. For instance, you should be checking how your current mortgage and insurance policies compare with other providers on an annual basis. Lenders change their policy structures regularly, so chances are you can acquire a better deal if you do a bit of research.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s most definitely worth the time and effort! If you find a better offer somewhere else, don’t hesitate to ask your existing provider to match it, and equally, don’t be afraid to change providers if they don’t. There’s plenty 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 equate 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 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 with Bankruptcy Fremantle on 1300 818 575, or visit our website for additional information: http://www.bankruptcy-fremantle.com.au/