The New Year is undoubtedly an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions concentrate on getting healthier, enhancing their career, or improving their financial circumstances. Now most of us appreciate how tough it can be to keep our New Year’s resolutions, so it is necessary that you make practical, obtainable goals that can be achieved with a certain degree of persistence and discipline.
If you’ve made a decision that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To achieve significant financial improvements in your life, it’s necessary that you address only the things you can control and to evaluate your progression continually. To give you some ideas on effective ways to do this, the following details some recommendations that you should follow if you wish to enhance your financial well-being in the coming year.
Set clear financial goals
Studies have revealed that merely writing down goals noticeably increases the likelihood of you achieving them. In a monetary sense, writing down precise goals with an anticipated timeline not only increases the chances of you realising these goals, but you’ll additionally understand what is most important to you.
Some financial goals, for instance retirement, may necessitate the assistance of a financial planner, but there are many simple, conceivable goals that you can arrange on your own, for example purchasing a car, saving for a home deposit, or creating an emergency fund for a rainy day. It is crucial that you take small steps to achieve these goals, and reviewing your progression regularly is the key to success.
Increase your savings
Lot of people aren’t sure how much money they save annually, so it is crucial that you specify an actual dollar amount that you hope to save for the coming year. Regardless if you achieve 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 set up an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will enhance your net worth and overall financial health.
Track your spending
Understanding just how much you spend every month is integral in having the ability 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 wonderful apps that monitor your spending on the go, providing you with a true indication of how much you’re spending with minimal effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and effective 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 numerous other apps on the market, so don’t hesitate to test a few to discover which is best for you.
Assess 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 evaluating how your current home loan and insurance policies compare to other providers on an annual basis. Banks and lenders change their policy structures frequently, so chances are you can obtain 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 unquestionably worth the effort! If you find a better offer somewhere else, don’t be afraid to ask your existing provider to match it, and in the same way, don’t be afraid to switch providers if they don’t. There’s an abundance of online resources which can thoroughly guide you through this process.
Seek advice immediately 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 problems without understanding that there are a number of options available to them to improve their financial wellbeing.
If you’re encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial situation, don’t hesitate to speak to Gold Coast Bankruptcy Centre on 1300 795 575, or visit our website for more information: www.goldcoastbankruptcycentre.com.au