New Year’s Resolution – Improving your Financial Health
The New Year is obviously an excellent time to reflect on the previous year and make some resolutions to improve ourselves. Lot of people’s resolutions centre around being healthier, enhancing their career, or improving their financial circumstances. Now all of us know how challenging it can be to keep our New Year’s resolutions, so it is vital that you make sensible, obtainable goals that can be achieved with a certain degree of determination and self-control.
If you’ve determined that you want to improve your financial health in 2018, there’s a decent amount of preparation and planning involved. To attain considerable financial improvements in your life, it’s pivotal that you address only the things you can control and to examine your progression continously. To give you some ideas on how you can do this, the following outlines some recommendations that you should follow if you wish to enhance your financial well-being in the following year.
Set clear financial goals
Research reveal that merely writing down goals noticeably increases the probability of you reaching them. In a financial sense, writing down individual goals with an expected timeline not only increases the probability of you reaching these goals, but you’ll additionally understand what is most important to you.
Certain financial goals, such as retirement, may require the help of a financial planner, but there are many simple, plausible goals that you can plan on your own, like purchasing a vehicle, saving for a home deposit, or creating an emergency fund for a rainy day. It is vital that you take small steps to achieve these goals, and examining your progress on a regular basis is the key to success.
Increase your savings
Most people don’t know how much money they save every year, so it is very important that you set an actual dollar amount that you wish to save for the upcoming year. Regardless of whether you achieve this goal or not isn’t the issue, the fact that you’re setting specific goals and planning ways to reach these goals is the most important aspect.
Simple ways to increase your savings account is to increase your superannuation payments (and possibly Government payments), or organise an automatic deposit into an emergency fund or high interest savings account each week. Regardless of how you do this, increasing your savings will enhance your net worth and general financial health.
Track your spending
Understanding just how much you spend each month is essential 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 some wonderful apps that track your spending on the go, giving you a precise indication of how much you’re spending with hardly any effort required.
ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a credible and effective tool that helps you realise your typical monthly and annual spending, so you can better plan and achieve your financial goals. If this doesn’t suit you, there are plenty of other apps available, so don’t be afraid to test a couple 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 inspecting how your current home loan and insurance policies compare to other providers on an annual basis. Lenders change their policy structures frequently, so chances are you can get a better deal if you do a bit of homework.
Even small decreases in interest rates can save you thousands of dollars annually, so it’s undoubtedly worth the effort! If you find a better package elsewhere, don’t hesitate to ask your existing provider to match it, and similarly, don’t hesitate to switch providers if they don’t. There’s lots of online resources which can thoroughly 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 people suffer through years of stress from financial problems without realising that there are a number of options available to them to boost their financial wellbeing.
If you’re experiencing any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to talk with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website for more information: www.bankruptcyexpertsbunbury.com.au