As per the Fidelity New Year Resolution Study, 54% of individuals prioritize financial resolutions over other kinds of start-of-the-year commitments. While it can be tempting to apply for an instant money loan for your long-awaited trip to Bali or an instant cash loan for the gaming laptop you’ve always wanted, 2019 should be the year of judicious financial decisions. To help you do the same, here is a list of 7 financial new year’s resolutions that one can adopt right away.
1. Save More Money
An immensely popular resolution, even though somewhat impracticable. One can adopt the following ways to help make this resolution a bit more actionable:
- save at least 20% of your monthly salary for an emergency fund.
- invest more money in your investment account than you did last year.
- save enough to be able to live comfortably for 3 months without worrying over bills, if the need arises.
- save enough to be able to gift something special to your family at least once a year.
While these are rough ideas to help you save money, you can find creative ways to do so as per your convenience.
2. Chart Out Your Budget
You can take the help of certain budgeting apps to have a rough idea of where your money is being spent. Or you could simply create a budget with the help of a spreadsheet, wherein you can log your transactions and plan your month accordingly. No matter how you wish to do it, a budget will allow you to spend within certain limits and help you identify the areas of expenditure which require supervision.
3. Reduce Expenditures
While this is difficult to act upon, you can use certain money-saving apps that will help enforce the habit of reducing expenditures. You can also curb impulsive spending with the help of a wish list on your phone. If you still wish to buy this product or service after a month, you can buy it, or else you can take it off your list. You can make small, yet trans-formative changes in your lifestyle – for instance, if you cook your own lunch instead of buying it, you will be able to save way more than you can fathom.
4. Envision Long-Term Financial Goal
This entails charting out a retirement plan and saving for health care, emergency situations, and continuing education. Start investing now, as this will prove to be immensely beneficial in the long run. If you are self-employed or your company does not offer a 401k option (a retirement savings plan), you can open a Roth IRA or consult a financial advisor.
5. Pay-off Outstanding Debts
Outstanding debts can be in the form of credit cards, small personal loans, student loans, car loans, or mortgages. Paying off your loans is the best gift you can give yourself this year, as this will help improve your credit score in an unprecedented manner.
6. Quit Smoking
While most smokers have this resolution on their list every year, it is difficult to work upon the same. The average smoker spends more than 30,000 INR per year on cigarettes alone – a hefty amount that can be used to buy a middle-end laptop! Hence, if you wish to quit, do it for the sake of your wallet, as that might serve as a better motivation.
7. Lead Healthy Lifestyle
While this resolution is a popular one, it becomes almost impossible for some people to achieve. You can make this more actionable by setting a specific goal, such as drinking less beer, which can reduce your total expenditures to a considerable extent. If you work towards losing pounds and eating healthy, you will automatically spend less on food and other kinds of luxury items.
So, what are you waiting for? Start making your financial resolution list and try to stick to it till the end of this year!