The New Year is obviously a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions concentrate on being healthier, improving their career, or improving their financial health. Now most of us realise how challenging it can be to keep our New Year’s resolutions, so it is vital that you make realistic, attainable goals that can be achieved with a specific degree of dedication and self-control.
If you’ve determined that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation involved. To create meaningful financial improvements in your life, it’s imperative that you address only the things you can control and to revise your progress continually. To give you some insight on how to do this, the following outlines some recommendations that you should follow if you want to enhance your financial well-being in the upcoming year.
Set clear financial goals
Research have revealed that merely writing down goals considerably increases the chances of you reaching them. In a financial sense, writing down precise goals with an expected timeline not only increases the likelihood of you reaching these goals, but you’ll likewise understand what is most important to you.
Several financial goals, such as retirement, may require the help of a financial planner, but there are many practical, plausible goals that you can plan on your own, for instance buying a vehicle, saving for a home deposit, or establishing an emergency fund for a rainy day. It is very important that you take small steps to reach these goals, and evaluating your progress regularly 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 determine an actual dollar amount that you hope to save for the following year. Whether you reach this goal or not isn’t the point, the fact that you’re specifying 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 contributions), 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 increase your net worth and long-term financial health.
Track your spending
Understanding just how much you spend each month is vital 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 few terrific apps that keep track of your spending on the go, giving you a true indication of how much you’re spending with minimal effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and effective tool that helps you understand your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are plenty of other apps on the market, so don’t hesitate to test a few to see which is best for you.
Examine your mortgage and insurance policies
Evaluating your mortgage and insurance policies is an effective way to increase your savings. For example, you should be evaluating how your current mortgage and insurance policies measure up to other providers on an annual basis. Banks and financial institutions modify their policy structures all the time, 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 definitely worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your current provider to match it, and similarly, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.
Seek advice immediately if you’re experiencing financial turmoil
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial turmoil without understanding that there are a number of options available to them to improve their financial wellbeing.
If you’re encountering any financial grief, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial predicament, don’t hesitate to speak with Bankruptcy Experts Darwin on 1300 795 575, or visit our website for more information: Declaring Bankruptcy Darwin