The New Year is unquestionably an optimal time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions address issues like becoming healthier, enhancing their career, or improving their financial position. Now all of us realise how challenging it can be to keep our New Year’s resolutions, so it is necessary that you make practical, attainable goals that can be accomplished with a specific degree of determination and discipline.
If you’ve made a decision that you wish to improve your financial health in 2018, there’s a decent amount of planning and preparation needed. To enjoy significant financial improvements in your life, it’s pivotal that you focus on the things you can control and to review your progress routinely. To give you some insight on how you can do this, the following details 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 significantly increases the chances of you achieving them. In a financial sense, writing down distinct goals with an anticipated timeline not only increases the chances of you accomplishing these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, for example retirement, may necessitate the services of a financial planner, but there are many basic, obtainable goals that you can plan by yourself, for instance buying a car, saving for a home deposit, or preparing an emergency fund for a rainy day. It is essential that you take small steps to achieve these goals, and assessing your progress regularly is the key to success.
Increase your savings
The majority of people don’t know how much money they save every year, so it is crucial that you determine an actual dollar amount that you hope to save for the following year. Regardless of whether you reach this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to accomplish these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government contributions), or established 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 just how much you spend each month is pivotal in being able to increase your financial health. Keeping every bill and receipt and manually producing a spreadsheet is one way to do it, but there are some great apps that monitor your spending on the go, giving you a true indication of how much you’re spending with hardly any effort needed.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and efficient tool that helps you understand your average monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t satisfy you, there are many other apps available, so don’t be afraid to test a few to discover which is best for you.
Revise your mortgage and insurance policies
Evaluating your mortgage and insurance policies is a practical way to increase your savings. For instance, you should be examining how your current home loan and insurance policies compare with other providers on an annual basis. Lenders change their policy structures regularly, 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 absolutely worth the effort! If you find a better offer somewhere else, don’t hesitate to ask your existing provider to match it, and at the same time, don’t hesitate to switch providers if they don’t. There’s an abundance of online resources which can successfully guide you through this process.
Seek advice immediately if you’re experiencing financial hardship
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Many people suffer through years of stress from financial hardship without understanding that there are a number of options available to them to enrich their financial well being.
If you’re encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice relating to your financial situation, don’t hesitate to speak to Bankruptcy Experts Kalgoorlie on 1300 795 575, or visit our website for further information: Bankruptcy Kalgoorlie