June 1, 2018 Comments Closed

New Year’s Resolution – Improving your Financial Health

Posted by:admin onJune 1, 2018

The New Year is certainly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Lots of people’s resolutions address issues like becoming healthier, strengthening their career, or improving their financial health. Now all of us understand how tough it can be to keep our New Year’s resolutions, so it is essential that you make reasonable, attainable goals that can be accomplished with a specific degree of determination 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 preparation and planning needed. To realise meaningful financial improvements in your life, it’s necessary that you concentrate on the things you can control and to evaluate your progress continously. To give you some ideas on the best ways to do this, the following outlines some suggestions that you should follow if you want to improve your financial well-being in the coming year.

Set clear financial goals

Research have shown that merely writing down goals markedly increases the likelihood of you reaching them. In a financial sense, writing down precise goals with an anticipated timeline not only increases the likelihood of you accomplishing these goals, but you’ll also understand what is most important to you.

A number of financial goals, such as retirement, may necessitate the guidance of a financial planner, but there are many straightforward, plausible goals that you can plan by yourself, such as buying a car, saving for a home deposit, or establishing an emergency fund for a rainy day. It is essential that you take small steps to accomplish these goals, and assessing your progression frequently is the key to success.

Increase your savings

Most individuals aren’t sure how much money they save each year, so it is essential that you establish an actual dollar amount that you aspire to save for the forthcoming year. Whether you achieve this goal or not isn’t the point, the fact that you’re creating specific goals and planning ways to achieve these goals is the most important part.

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 bolster your net worth and overall financial health.

Track your spending

Understanding how much you spend every month is crucial in having the ability to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a few excellent apps that track your spending on the go, giving you a precise indication of how much you’re spending with little effort needed.

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

Review your home loan and insurance policies

Assessing your home loan and insurance policies is a reliable way to increase your savings. For example, you should be assessing how your current home loan and insurance policies measure up to other providers on an annual basis. Lenders modify their policy structures all the time, so chances are you can obtain 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 most certainly worth the effort! If you find a better package somewhere else, don’t hesitate to ask your current provider to match it, and likewise, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can thoroughly guide you through this process.

Seek advice quickly if you’re experiencing financial hardshp

Improving your financial health doesn’t always correspond to increasing your savings and emergency funds. Many individuals suffer through years of stress from financial problems without understanding that there are plenty of options available to them to enhance 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 situation, don’t hesitate to talk with Bankruptcy Mount Isa on 1300 795 575, or visit our website for additional information: http://www.bankruptcy-mountisa.com.au/

 

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