New Year’s Resolution – Improving your Financial Health
The New Year is obviously an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions concentrate on getting healthier, boosting their career, or improving their finances. Now all of us recognise how challenging it can be to keep our New Year’s resolutions, so it is essential that you make sensible, obtainable goals that can be accomplished with a specific degree of persistence and self-control.
If you’ve come to a decision that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To attain significant financial improvements in your life, it’s necessary that you address only the things you can control and to examine your progression on a regular basis. To give you some insight on how you can do this, the following details some recommendations that you should follow if you aspire to enhance your financial well-being in the upcoming year.
Set clear financial goals
Research indicates that simply writing down goals considerably increases the probability of you reaching them. In a monetary sense, writing down individual goals with an expected timeline not only increases the chances of you achieving these goals, but you’ll additionally understand what is most important to you.
A number of financial goals, such as retirement, may require the assistance of a financial planner, but there are many straightforward, obtainable goals that you can arrange by yourself, such as buying a vehicle, saving for a home deposit, or assembling an emergency fund for a rainy day. It is very important that you take small steps to accomplish these goals, and reviewing your progress often is the key to success.
Increase your savings
Most individuals aren’t sure how much money they save every year, so itis critical that you set an actual dollar amount that you aspire to save for the following year. Regardless of whether you reach this goal or not isn’t the point, the fact that you’re setting specific goals and planning ways to accomplish these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government contributions), 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 how much you spend every month is crucial 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 some great apps that monitor your spending on the go, providing you with a precise indication of how much you’re spending with little effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and efficient tool that helps you realise your average monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t satisfy you, there are many other apps out there, so don’t hesitate to test a few to find which is best for you.
Assess your home loan and insurance policies
Examining your home loan and insurance policies is a reliable 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 financial institutions adjust their policy structures regularly, so chances are you can receive 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 absolutely worth the time and effort! If you find a better package elsewhere, don’t hesitate to ask your current provider to match it, and at the same time, don’t hesitate to switch providers if they don’t. There’s lots of online resources which can thoroughly guide you through this process.
Seek advice immediately if you’re experiencing financial hardshp
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial distress without realising that there are plenty of options available to them to enrich 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 get in touch with Bankruptcy Experts Sydney on 1300 795 575, or visit our website for further information: www.bankruptcyexpertssydney.com.au