January 19, 2018Comments Closed

New Year’s Resolution – Improving your Financial Health

Posted by:Bankruptcy Specialist onJanuary 19, 2018

The New Year is most certainly a great time to reflect on the previous year and make some resolutions to improve ourselves. Many people’s resolutions focus on becoming healthier, enhancing their career, or improving their financial position. Now we all understand how difficult it can be to stick to our New Year’s resolutions, so it is necessary that you make realistic, obtainable goals that can be accomplished with a specific degree of willpower and self-control.

If you’ve made a decision that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation needed. To enjoy considerable financial improvements in your life, it’s key that you address only the things you can control and to revise your progression on a regular basis. To give you some insight on how you can do this, the following details some recommendations that you should follow if you aspire to enhance your financial well-being in the following year.

Set clear financial goals
Research have revealed that simply writing down goals significantly increases the chances of you reaching them. In a financial sense, writing down detailed goals with an anticipated timeline not only increases the chances of you reaching these goals, but you’ll also understand what is most important to you.

Certain financial goals, for instance retirement, may require the services of a financial planner, but there are many simple, plausible goals that you can plan by yourself, like buying a vehicle, saving for a home deposit, or organising an emergency fund for a rainy day. It is vital that you take small steps to accomplish 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 each year, so it is essential that you establish an actual dollar amount that you aspire to save for the upcoming 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 reach 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 organise an automatic deposit into an emergency fund or high interest savings account each week. Irrespective of how you do this, increasing your savings will increase your net worth and general financial health.

Track your spending
Understanding how much you spend every month is essential in having the capacity 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 number of excellent apps that keep track of your spending on the go, giving you an exact indication of how much you’re spending with little effort needed.

ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trustworthy and reliable 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 suit you, there are numerous other apps available, so don’t be afraid to test a couple to discover which is best for you.

Review your home loan and insurance policies
Evaluating your home loan and insurance policies is an effective way to increase your savings. For example, you should be checking how your current mortgage and insurance policies compare to other providers on an annual basis. Banks and financial institutions change their policy structures all the time, so chances are you can receive 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 undoubtedly worth the time and effort! If you find a better offer elsewhere, don’t be afraid to ask your existing provider to match it, and in the same manner, don’t hesitate to change providers if they don’t. There’s loads of online resources which can effectively 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. Lots of people suffer through years of stress from financial hardship without understanding that there are several options available to them to enhance their financial wellbeing.

If you’re experiencing any financial anguish, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial predicament, don’t hesitate to speak with Bankruptcy Penrith on 1300 818 575, or visit our website for more information: https://www.bankruptcy-penrith.com.au/

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