The New Year is certainly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions address issues like becoming healthier, developing their career, or improving their finances. Now we all appreciate how challenging it can be to keep our New Year’s resolutions, so it is necessary that you make reasonable, attainable goals that can be achieved with a specific degree of determination and self-discipline.
If you’ve made a decision that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To attain meaningful financial improvements in your life, it’s imperative that you address only the things you can control and to evaluate your progress routinely. To give you some insight on how you can do this, the following details some suggestions that you should follow if you wish to improve your financial well-being in the upcoming year.
Set clear financial goals
Research have revealed that merely writing down goals substantially increases the likelihood of you accomplishing them. In a monetary sense, writing down individual goals with an anticipated timeline not only increases the chances of you realising these goals, but you’ll likewise understand what is most important to you.
Some financial goals, such as retirement, may require the services of a financial planner, but there are many straightforward, plausible goals that you can arrange by yourself, like buying a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and examining your progression on a regular basis is the key to success.
Increase your savings
Lot of people aren’t sure how much money they save every year, so it is vital that you stipulate an actual dollar amount that you wish to save for the coming year. Regardless if you reach this goal or not isn’t the issue, the fact that you’re setting 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 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 overall financial health.
Track your spending
Understanding just how much you spend each month is vital in having the ability 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 great apps that keep track of your spending on the go, providing you with an exact indication of how much you’re spending with very little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and dependable 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 fit you, there are plenty of other apps on the market, so don’t be afraid to test a couple to discover which is best for you.
Review your mortgage and insurance policies
Examining your home loan and insurance policies is an excellent way to increase your savings. For instance, you should be examining how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions change 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 definitely worth the time and effort! If you find a better package 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 lots 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 folks suffer through years of stress from financial troubles without realising that there are plenty of options available to them to improve their financial wellbeing.
If you’re encountering any financial anguish, 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 talk with Bankruptcy Melbourne on 1300 879 867, or visit our website for more information: Bankruptcy Melbourne