January 19, 2018 0

New Year’s Resolution – Improving your Financial Health

Posted by:Charles Bosse onJanuary 19, 2018

The New Year is obviously a great time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions centre around getting healthier, boosting their career, or improving their financial position. Now most of us understand how difficult it can be to keep our New Year’s resolutions, so it is necessary that you make sensible, obtainable goals that can be accomplished with a certain degree of determination and self-discipline.

If you’ve made a decision that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To realise considerable financial improvements in your life, it’s important that you focus on the things you can control and to assess your progress regularly. To give you some ideas on how to do this, the following outlines some recommendations that you should follow if you choose to improve your financial well-being in the upcoming year.

Set clear financial goals

Research have shown that merely writing down goals significantly increases the chances of you achieving them. In a monetary sense, writing down detailed goals with an anticipated timeline not only increases the chances of you achieving these goals, but you’ll additionally understand what is most important to you.

Some financial goals, like retirement, may require the guidance of a financial planner, but there are many simple, feasible goals that you can arrange by yourself, like buying a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is essential that you take small steps to reach these goals, and assessing your progress regularly is the key to success.

Increase your savings

Most people have no idea how much money they save each year, so it is vital that you stipulate an actual dollar amount that you hope to save for the forthcoming 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 accomplish 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 established 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 overall financial health.

Track your spending

Understanding how much you spend each month is essential in having the capacity to increase your financial health. Keeping every bill and receipt and manually developing a spreadsheet is one way to do it, but there are some fantastic apps that keep track of your spending on the go, providing you with a true indication of how much you’re spending with little effort required.

ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and dependable tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t fit you, there are lots of other apps available, so don’t be afraid to test a couple to discover which is best for you.

Assess your home loan and insurance policies

Evaluating your home loan and insurance policies is an effective way to increase your savings. For example, you should be examining how your current home loan and insurance policies compare to other providers on an annual basis. Lenders adjust their policy structures all the time, so chances are you can receive a better deal if you do a bit of homework.

Even small decreases in interest rates can save you thousands of dollars every year, so it’s most certainly worth the time and effort! If you find a better package somewhere else, don’t be afraid to ask your current provider to match it, and equally, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can thoroughly guide you through this process.

Seek advice promptly if you’re experiencing financial distress

Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial troubles without realising that there are plenty of options available to them to enhance 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 regarding your financial predicament, don’t hesitate to speak with Fresh Start Solutions Gold Coast on 1300 818 575, or visit our website for further information: Bankruptcy Goldcoast

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