|January 19, 2018||0|
The New Year is undoubtedly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions focus on becoming healthier, enhancing their career, or improving their financial circumstances. Now we all understand how tough it can be to stick to our New Year’s resolutions, so it is vital that you make practical, obtainable goals that can be accomplished with a certain degree of determination and discipline.
If you’ve elected that you wish to improve your financial health in 2018, there’s a fair amount of preparation and planning needed. To obtain meaningful financial improvements in your life, it’s crucial that you concentrate on the things you can control and to review your progress continually. To give you some ideas on the best ways to do this, the following outlines some recommendations that you should follow if you want to improve your financial well-being in the following year.
Set clear financial goals
Studies indicates that simply writing down goals greatly increases the likelihood of you achieving them. In a financial sense, writing down distinct goals with an anticipated timeline not only increases the probability of you accomplishing these goals, but you’ll also understand what is most important to you.
Several financial goals, for example retirement, may require the services of a financial planner, but there are many basic, plausible goals that you can arrange by yourself, such as purchasing a vehicle, saving for a home deposit, or assembling an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and assessing your progress often is the key to success.
Increase your savings
Most individuals don’t know how much money they save every year, so it is crucial that you establish 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 part.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government payments), or arrange an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will increase your net worth and overall financial health.
Track your spending
Understanding how much you spend each month is vital 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 some great apps that monitor your spending on the go, giving you a true indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and effective tool that helps you understand your average 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 be afraid to test a few to discover which is best for you.
Assess your mortgage and insurance policies
Evaluating your mortgage and insurance policies is an excellent way to increase your savings. For instance, you should be examining how your current home loan and insurance policies compare with other providers on an annual basis. Banks and lenders modify their policy structures regularly, so chances are you can acquire 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 certainly worth the time and effort! If you find a better offer somewhere else, don’t hesitate to ask your current provider to match it, and equally, don’t be afraid to switch providers if they don’t. There’s lots of online resources which can effectively guide you through this process.
Seek advice promptly if you’re experiencing financial distress
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 several 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 situation, don’t hesitate to talk with Bankruptcy Cairns on 1300 818 575, or visit our website for more information: http://www.bankruptcy-cairns.com.au/