|January 19, 2018||Comments Closed|
The New Year is unquestionably a great time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions address issues like getting healthier, boosting their career, or improving their financial position. Now we all 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 willpower and discipline.
If you’ve decided that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation involved. To create considerable financial improvements in your life, it’s important that you focus on the things you can control and to examine your progress often. To give you some ideas on how you can do this, the following outlines some suggestions that you should follow if you want to improve your financial well-being in the forthcoming year.
Set clear financial goals
Studies have revealed that simply writing down goals significantly increases the chances of you accomplishing them. In a financial sense, writing down specific goals with an expected timeline not only increases the probability of you realising these goals, but you’ll also understand what is most important to you.
A number of financial goals, such as retirement, may necessitate the assistance of a financial planner, but there are many practical, feasible goals that you can plan by yourself, for instance purchasing a car, saving for a home deposit, or creating an emergency fund for a rainy day. It is very important that you take small steps to reach these goals, and examining your progression regularly is the key to success.
Increase your savings
Lot of people don’t know how much money they save annually, so it is crucial that you determine an actual dollar amount that you wish to save for the following year. Regardless of whether you accomplish this goal or not isn’t the issue, the fact that you’re creating specific goals and planning ways to achieve 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 schedule 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 how much you spend each month is critical 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 few fantastic apps that track your spending on the go, giving you a true indication of how much you’re spending with little effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and reliable tool that helps you realise your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t suit you, there are lots of other apps out there, so don’t hesitate to test a few to find which is best for you.
Examine your mortgage and insurance policies
Examining your mortgage and insurance policies is an effective way to increase your savings. For example, you should be examining how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and lenders adjust their policy structures regularly, 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 most certainly worth the time and effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and at the same time, don’t be afraid to switch providers if they don’t. There’s plenty of online resources which can adequately guide you through this process.
Seek advice as soon as possible if you’re experiencing financial turmoil
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 several options available to them to boost 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 talk to Bankruptcy Newcastle on 1300 795 575, or visit our website for more information: https://www.bankruptcy-newcastle.com.au/