January 19, 2018 0

New Year’s Resolution – Improving your Financial Health

Posted by:Charles Bosse onJanuary 19, 2018

The New Year is most certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions address issues like being healthier, improving their career, or improving their financial circumstances. Now we all appreciate how challenging it can be to stick to our New Year’s resolutions, so it is vital that you make practical, attainable goals that can be accomplished with a specific degree of tenacity and self-control.

If you’ve decided that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation involved. To develop meaningful financial improvements in your life, it’s fundamental that you address only the things you can control and to evaluate your progress on a regular basis. To give you some insight on how to do this, the following details some recommendations that you should follow if you aspire to improve your financial well-being in the upcoming year.

Set clear financial goals

Research reveal that merely writing down goals considerably increases the likelihood of you reaching them. In a financial sense, writing down exact goals with an anticipated timeline not only increases the likelihood of you reaching these goals, but you’ll also understand what is most important to you.

Several financial goals, like retirement, may necessitate the assistance of a financial planner, but there are many simple, plausible goals that you can plan on your own, for instance purchasing a car, saving for a home deposit, or establishing an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and revising your progression on a regular basis is the key to success.

Increase your savings

Lot of people aren’t sure how much money they save annually, so it is essential that you assign an actual dollar amount that you hope to save for the following year. Regardless if you reach this goal or not isn’t the issue, the fact that you’re specifying specific goals and planning ways to achieve 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 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 long-term financial health.

Track your spending

Understanding how much you spend every month is pivotal 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 a couple of wonderful apps that track 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 reputable and efficient 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 many other apps on the market, so don’t hesitate to test a couple to see which is best for you.

Revise your home loan and insurance policies

Assessing your mortgage and insurance policies is a useful way to increase your savings. For example, you should be reviewing how your current home loan and insurance policies compare with other providers on an annual basis. Banks and financial institutions adjust 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 each year, so it’s most certainly worth the time and effort! If you find a better offer elsewhere, don’t hesitate to ask your existing provider to match it, and likewise, don’t be afraid to change providers if they don’t. There’s lots of online resources which can successfully guide you through this process.

Seek advice as soon as possible if you’re experiencing financial trouble

Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial problems without realising that there are plenty of options available to them to improve their financial wellbeing.

If you’re experiencing 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 talk to Fresh Start Solutions Hobart on 1300 818 575, or visit our website for more information: Bankruptcy Hobart

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