The New Year is a great time to set new financial resolutions. A solid financial resolution can help you to achieve your short term and long term money goals.
Did you make any monetary resolutions last January? If so, did you attain your goals, or was this year a total financial washout for you? Don’t be discouraged.
The new year stands before us, like a chapter in a book, waiting to be written. We can help write that story by setting goals. – Melody Beattie
The fact is, less than 10% of resolution-makers achieve their goals. So, there is plenty of room for improvement, especially in the case of money. Let’s do something different this year.
In the following days first, review your financial scorecard of the last year. Then, mark for efforts to improve and prepare new financial resolutions of your own.
New Year’s Financial Resolutions for 2019
Let’s create a list of financial New Year’s resolutions for 2019 and see the benefits of them.
- Save more and more
- Stick to your Budget
- Pay Bills Right when Receiving Your Paycheck
- Close Unnecessary Accounts
- Add One Month’s Pay to Your Emergency Fund
- Review Your Credit Report
- Boost your retirement contributions
- Invest money in the stock market.
- Commit to no-spend days
- Quit Smoking
- Become a continual monthly giver to at least one charity
- Evaluate last year’s money mistakes
1. Save More and More
This is the foremost fashionable resolution on everyone’s list. But what will it truly mean? That you simply ought to save a couple of thousand more than the last year? No.
Save additional in every of your cash segments. Let’s dig into this a little deeper and make this more actionable.
- Save additional a minimum of 10k for your emergency fund.
- Upgrade your medical insurance.
- Invest a minimum of 30%-40% additional into your investments.
- Save additional for your youngsters academic set up.
- Save enough for that next huge get.
These square measure some concepts from my behalf. However, you get the purpose. Now, you can add your own to the list.
2. Stick to your Budget
Firstly, take care to maintain a realistic budget. Don’t forget these items at the time of constructing the budget – what quantity you’re taking in when taxes, what quantity you’re spending, how much you’re saving.
You need to take care wherever your cash goes. So, you need to track your spendings. Initially, you can use a simple spreadsheet or any online budgeting tool for one month. I will bet you’ll be addicted.
Creating your own budget and your net worth statement, continually assist you to create your roadmap. However, you just ought to stick on your set up.
3. Pay Bills Right when Receiving Your Paycheck
We need to take care of all the necessary monthly obligations before indulging yourself in any luxury expenses. It provides you a higher sense of what you can actually afford and what you can’t.
It additionally helps you avoid ever having a late payment tendency. Furthermore, early paying your bill always improves your credit utilization and so your credit score.
So, you’ll be able to start two automatic monthly payments from a savings account. First, right when day and another for one or two of days before your monthly due date.
This habit can build your monthly budget a lot of realistic.
4. Close Unnecessary Accounts
All the banks and financial institutions charge some monthly or yearly fees. So, if any of your checking accounts is not any longer helpful, best is to shut them.
Let’s me justify you with a practical example. Anant Roy is a software consultant. He has been switched his job four times in last three years. Each time the new organization opened a new salary account for Anant in different banks.
Now, the concern is that the zero-balance salary account gets automatically converted into a regular savings account in three to six months. So, the minimum average balance maintenance becomes essential. Most of the time we tend to ignore these matters due to our daily workload or lethargy. But, the bank starts deducting charges for non-maintenance of minimum balance.
Most of the times, the bank accounts become dormant. So, all services like checkbooks, internet banking, issues of debit card are no more entertained regularly by the bank. As a result, at the time of filing your taxation, this becomes a big downside in computing your interest.
So, do n’t forget to shut your inessential accounts this year.
5. Add One Month’s Pay to Your Emergency Fund
The risk is a part of life. Therefore we should be prepared for emergencies. So, it is always recommended to create an emergency fund and deposited a minimum of your one month financial gain. This emergency fund will assist you to cover unexpected-but-necessary expenses.
But it’s important to understand that it can’t happen overnight. So, you need to put your effort and start balancing your monthly expenditure from right now. It’s a huge resolution for anyone. Again, you require to stay your financial life on hold till your emergency fund is complete.
6. Review Your Credit Report
Make sure you check your credit report often. A bad credit report might adversely have an impact on the amount you’re able to save. Therefore, it might lead to you paying higher interest rates on loans, which can cut back your financial gain.
Credit reports contain a ton of information. So, it’s vital to review that very carefully. Ensure that account balances and your payment standing area unit correct.
Sometimes, a wrong reported account balance could appear minor. However, this produces immense hazards in your credit utilization. So, check your credit a minimum of once in a month. You can set a reminder in your phone to ensure that you do it regularly.
7. Boost your Retirement Contributions
The truth is that the earlier you start saving, investing and planning for retirement, that will be better for you. Be thankful for the power of compound interest.
Nowadays, most of us not have enough savings for retirement. There is only one way to change that—start saving right now. Even if it’s just a little. If you haven’t saved anything yet, then resolve this year. Open an account and put some cash aside.
But, if you already started savings, then you are many steps ahead of others. So, you need to increase your contribution rate. Firstly, build thought and bit by bit increase the proportion of retirement savings and investment. So, barely it’ll impact on your lifestyle.
8. Invest Money in the Stock Market
Investing in a renowned company, you’ll be able to earn a handful return depending on how good the stock is and how much time you invested in the selected stock. Therefore, investment will assist you to remain pace with the rising inflation.
You’ve worked hard to earn money. Now you can put it to work. So, invest your money in a worth stock and keep monitoring. The money will grow automatically as the company prospers.
9. Commit to No-Spend Days
You can commit to two or three no-spend days per month. I even have tried and believed me this is fun. Make those days a stay at home day. In those days you will eat at home, find free entertainment and skip online or offline shopping.
You can enlist your friends or partner to commit to “no-spend days” with you.
In that manner, you’ll challenge your shopping habits. So, choose the dates, mark them currently, and commit yourself to not spending a single amount. This is a very effective way to learn more about yourself. You can rethink your consumption habits, and saving a couple of thousand additional.
10. Quit Smoking
I can bet that a large number of smokers have this resolution on their list once a year.
Did you know the average smoker spends about $2,000 a year solely on ordinary manufactured cigarettes? In India, a daily cigarette smoker spends Rs 1,192.45 per month.
That’s very crazy! You can buy something worthful with that money.
So, if you’re a smoker and in spite of knowing don’t quit smoking for your health, at least do it for your wallet.
11. Become a Continual Monthly giver to at least One Charity
We know that we don’t breathe in a perfect world, and there’s no such ideal time to give. But there are always some people out there in need of help. Find one charity and begin to donate monthly. Even only five hundred rupees per month.
In this approach, you’ll not solely feel good. Moreover, the action also will cause you to learn that what’s your margin to grant. Additionally, when your kids see you donating, they automatically adopt a giving mindset as they grow up. I write this from personal experience.
Again, the donation to some relief funds and charitable institutions claimed as a deduction under Section 80G of the Income Tax Act.
12. Evaluate Last Year’s Money Mistakes
Let’s take an honest look at your financial performance over the last year. Ask yourself first.
- Did you overspend?
- Not saved enough?
- Any luxurious buy?
- Any kind of unfinished investment?
Take a pen and paper and rethink all your money mistakes. Only then you’ll realize the answer and perform higher within the next year.
Adopting all resolutions is nearly definitely too much to ask. But try to pick some of these that may assist you to beat most of your money mistakes.
Surely, you’ll be surprised that how quickly they create a distinction in your outlook toward personal finance.
Be at war with your vices, at peace with your neighbors, and let every new year find you a better man. – Benjamin Franklin
Also, you can add your resolutions to the list and share them with us. So, along we will able to learn, and conjointly it’ll be useful for others.