New Year’s Resolution – Improving your Financial Health
The New Year is certainly an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions concentrate on getting healthier, developing their career, or improving their financial health. Now all of us know how challenging it can be to stick to our New Year’s resolutions, so it is necessary that you make reasonable, obtainable goals that can be accomplished with a specific degree of persistence and discipline.
If you’ve elected that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation involved. To achieve meaningful financial improvements in your life, it’s important that you concentrate on the things you can control and to evaluate your progression routinely. To give you some ideas on how to do this, the following outlines some suggestions that you should follow if you choose to improve your financial well-being in the coming year.
Set clear financial goals
Studies have shown that simply writing down goals noticeably increases the probability of you accomplishing them. In a monetary sense, writing down individual goals with an expected timeline not only increases the probability of you achieving these goals, but you’ll additionally understand what is most important to you.
A number of financial goals, like retirement, may require the help of a financial planner, but there are many simple, obtainable goals that you can plan by yourself, for instance purchasing a car, saving for a home deposit, or organising an emergency fund for a rainy day. It is very important that you take small steps to accomplish these goals, and reviewing your progress on a regular basis is the key to success.
Increase your savings
Many people have no idea how much money they save each year, so itis critical that you determine an actual dollar amount that you want to save for the forthcoming year. Whether you accomplish this goal or not isn’t the point, 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 contributions (and possibly Government payments), 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 bolster 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 generating a spreadsheet is one way to do it, but there are a couple of excellent apps that track your spending on the go, giving you a detailed 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 reliable 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 satisfy you, there are a number of other apps on the market, so don’t be afraid to test a couple to find which is best for you.
Review your home loan and insurance policies
Revising your home loan and insurance policies is a useful way to increase your savings. For instance, you should be assessing how your current home loan and insurance policies compare to other providers on an annual basis. Banks and lenders adjust their policy structures all the time, so chances are you can acquire 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 unquestionably worth the effort! If you find a better package somewhere else, don’t hesitate 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 effectively guide you through this process.
Seek advice as soon as possible if you’re experiencing financial trouble
Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial troubles without understanding that there are plenty of options available to them to boost 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 regarding your financial circumstances, don’t hesitate to get in touch with Bankruptcy Experts Joondalup on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsjoondalup.com.au