December 12th, 2018

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New Years Resolutions Finance

New Year’s Resolution – Improving your Financial Health

The New Year is most certainly an ideal time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions centre around becoming healthier, developing their career, or improving their financial health. Now most of us realise how difficult it can be to keep our New Year’s resolutions, so it is essential that you make realistic, attainable goals that can be achieved with a specific degree of willpower and self-control.

If you’ve elected that you want to improve your financial health in 2018, there’s a decent amount of planning and preparation required. To attain significant financial improvements in your life, it’s key that you concentrate on the things you can control and to revise your progress routinely. To give you some ideas on effective ways to do this, the following details some recommendations that you should follow if you choose to enhance your financial well-being in the following year.

Set clear financial goals

Research have revealed that simply writing down goals markedly increases the chances of you reaching them. In a financial sense, writing down individual goals with an expected timeline not only increases the likelihood of you achieving these goals, but you’ll likewise understand what is most important to you.

Certain financial goals, for instance retirement, may necessitate the support of a financial planner, but there are many straightforward, achievable goals that you can arrange on your own, for instance purchasing a vehicle, saving for a home deposit, or preparing an emergency fund for a rainy day. It is vital that you take small steps to reach these goals, and assessing your progression regularly is the key to success.

Increase your savings

The majority of people have no idea how much money they save each year, so it’s important that you stipulate an actual dollar amount that you hope to save for the upcoming year. Regardless if you reach this goal or not isn’t the issue, the fact that you’re specifying 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 arrange an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will enhance your net worth and general financial health.

Track your spending

Understanding how much you spend each month is integral 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 accurate indication of how much you’re spending with hardly any effort required.

ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and reliable 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 out there, so don’t be afraid to test a few to discover which is best for you.

Review your mortgage and insurance policies

Revising your home loan and insurance policies is an effective way to increase your savings. For instance, you should be checking how your current home loan and insurance policies measure up to other providers on an annual basis. Lenders modify their policy structures regularly, so chances are you can acquire 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 be afraid to ask your existing provider to match it, and similarly, don’t hesitate to switch providers if they don’t. There’s plenty of online resources which can successfully guide you through this process.

Seek advice as soon as possible if you’re experiencing financial turmoil

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 problems without understanding that there are plenty 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 relating to your financial predicament, don’t hesitate to talk with Bankruptcy Experts Canberra on 1300 795 575, or visit our website for additional information: Bankruptcy Canberra