The New Year is definitely a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on being healthier, improving their career, or improving their finances. Now we all know how difficult it can be to stick to our New Year’s resolutions, so it’s important that you make reasonable, obtainable goals that can be accomplished with a certain degree of dedication and self-discipline.
If you’ve decided that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To achieve considerable financial improvements in your life, it’s vital that you focus on the things you can control and to revise your progression routinely. To give you some insight on the best ways to do this, the following details some suggestions that you should follow if you want to improve your financial well-being in the following year.
Set clear financial goals
Studies have shown that merely writing down goals significantly increases the likelihood of you reaching them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the probability of you reaching these goals, but you’ll likewise understand what is most important to you.
A number of financial goals, such as retirement, may require the support of a financial planner, but there are many basic, obtainable goals that you can plan on your own, like buying a car, saving for a home deposit, or building an emergency fund for a rainy day. It is very important that you take small steps to reach these goals, and evaluating your progression regularly is the key to success.
Increase your savings
Lots of people aren’t sure how much money they save each year, so itis critical that you determine an actual dollar amount that you wish to save for the upcoming year. Regardless if you accomplish this goal or not isn’t the issue, the fact that you’re setting specific goals and planning ways to achieve 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 organise 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 how much you spend every month is essential in having the ability 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 couple of fantastic apps that keep track of your spending on the go, providing you with an exact indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and dependable tool that helps you realise your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t suit you, there are a number of other apps available, so don’t hesitate to test a few to find which is best for you.
Examine 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 checking how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and financial institutions modify their policy structures regularly, so chances are you can get a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars every year, so it’s unquestionably worth the effort! If you find a better package elsewhere, don’t be afraid to ask your current provider to match it, and in the same way, don’t be afraid to switch providers if they don’t. There’s loads of online resources which can successfully guide you through this process.
Seek advice quickly 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 problems without understanding that there are a number of options available to them to enrich their financial wellbeing.
If you’re experiencing any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial situation, don’t hesitate to reach out to Bankruptcy Experts Brisbane on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsbrisbane.com.au