January 19, 20180

New Year’s Resolution – Improving your Financial Health

Posted by:Charles Bosse onJanuary 19, 2018

The New Year is definitely an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most people’s resolutions centre around being healthier, improving their career, or improving their financial health. Now all of us realise how challenging it can be to keep our New Year’s resolutions, so it is essential that you make sensible, attainable goals that can be achieved with a certain degree of persistence and self-control.

If you’ve made up your mind that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To develop considerable financial improvements in your life, it’s pivotal that you focus on the things you can control and to revise your progress frequently. To give you some ideas on effective ways to do this, the following outlines some recommendations that you should follow if you want to enhance your financial well-being in the coming year.

Set clear financial goals
Research reveal that merely writing down goals noticeably increases the likelihood of you reaching them. In a financial sense, writing down precise goals with an expected timeline not only increases the chances of you realising these goals, but you’ll additionally understand what is most important to you.

Several financial goals, for instance retirement, may require the guidance of a financial planner, but there are many simple, achievable goals that you can arrange on your own, like purchasing a car, saving for a home deposit, or assembling an emergency fund for a rainy day. It is very important that you take small steps to achieve these goals, and reviewing your progress often is the key to success.

Increase your savings
Lot of people have no idea how much money they save annually, so it is essential that you set an actual dollar amount that you hope to save for the forthcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re setting 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 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 enhance your net worth and general financial health.

Track your spending
Understanding how much you spend every month is essential in having the ability to increase your financial health. Keeping every bill and receipt and manually producing a spreadsheet is one way to do it, but there are a couple of fantastic apps that keep track of your spending on the go, providing you with an exact indication of how much you’re spending with minimal effort needed.

ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient tool that helps you realise your typical monthly and annual spending, so you can better plan and reach your financial goals. If this doesn’t fit you, there are lots of other apps on the market, so don’t hesitate to test a few to see which is best for you.

Evaluate your mortgage and insurance policies
Reviewing your mortgage and insurance policies is an excellent way to increase your savings. For example, you should be assessing 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 research.

Even small decreases in interest rates can save you thousands of dollars every year, so it’s unquestionably worth the time and effort! If you find a better package elsewhere, don’t be afraid to ask your current provider to match it, and in the same way, don’t be afraid to switch providers if they don’t. There’s lots of online resources which can adequately guide you through this process.

Seek advice promptly if you’re experiencing financial trouble
Improving your financial health doesn’t always equate to increasing your savings and emergency funds. Lots of folks suffer through years of stress from financial problems without realising that there are several options available to them to boost their financial wellbeing.

If you’re encountering any financial anguish, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial predicament, don’t hesitate to get in contact with Fresh Start Solutions on 1300 818 575, or visit our website for further information: https://freshstartsolutions.com.au

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