|January 19, 2018||0|
The New Year is most certainly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions centre around becoming healthier, developing their career, or improving their finances. Now most of us know how difficult it can be to stick to our New Year’s resolutions, so it is essential that you make practical, attainable goals that can be accomplished with a specific degree of determination and discipline.
If you’ve come to a decision that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning involved. To acquire significant financial improvements in your life, it’s critical that you concentrate on the things you can control and to evaluate your progress often. To give you some insight on effective ways to do this, the following details some suggestions that you should follow if you want to improve your financial well-being in the coming year.
Set clear financial goals
Research indicates that simply writing down goals markedly increases the likelihood of you accomplishing them. In a monetary sense, writing down detailed goals with an expected timeline not only increases the chances of you realising these goals, but you’ll likewise understand what is most important to you.
Several financial goals, like retirement, may require the services of a financial planner, but there are many practical, feasible goals that you can plan by yourself, for example purchasing a vehicle, saving for a home deposit, or assembling an emergency fund for a rainy day. It is crucial that you take small steps to accomplish these goals, and evaluating your progression on a regular basis is the key to success.
Increase your savings
Lots of people aren’t sure how much money they save every year, so it is vital that you set an actual dollar amount that you want to save for the coming year. Regardless if you achieve this goal or not isn’t the issue, the fact that you’re creating 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 contributions (and possibly Government contributions), or set up an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will enhance your net worth and long-term financial health.
Track your spending
Understanding just 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 keep track of your spending on the go, providing you with a precise indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a reputable and efficient tool that helps you understand your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are a number of other apps out there, so don’t hesitate to test a few to see which is best for you.
Revise your mortgage and insurance policies
Examining your mortgage and insurance policies is an effective way to increase your savings. For instance, you should be inspecting how your current home loan and insurance policies compare to other providers on an annual basis. Banks and lenders modify their policy structures frequently, 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 each year, so it’s undoubtedly worth the effort! If you find a better package elsewhere, don’t hesitate to ask your current provider to match it, and equally, don’t be afraid to change providers if they don’t. There’s loads of online resources which can thoroughly guide you through this process.
Seek advice quickly if you’re experiencing financial distress
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of individuals suffer through years of stress from financial turmoil without realising that there are several options available to them to boost their financial wellbeing.
If you’re encountering any financial distress, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to get in contact with Fresh Start Solutions Sydney on 1300 818 575, or visit our website for more information: Bankruptcy Sydney