5 Financial Resolutions For The New Year

By BankBazaar | December 28, 2016

If you’re looking to get your finances in order for the coming year, we’ve put together 5 financial New Year resolutions that you simply must not waver from. 5 Financial Resolutions For The New Year

Looks like it’s that time of the year again. A new dawn, a new day and a new sense of purpose. You’re probably furiously chalking down your New Year resolutions on a sheet of paper a mile long while swiping your Credit Card for a few cocktails at a dingy pub downtown. We’re sure you’ve got all your bases covered – hit the gym, eat healthy, sleep well, step out of the friend zone, etc.

Admirable aims for sure, but what about your finances? Have you taken some time out to consider how well you’re placed financially? If you haven’t, well then, what better time than the cusp of a brand new year to start doing so?

Lucky for you, we’ve put together 5 financial resolutions that you simply must not waver from for the rest of the coming year:

1) Clear Those Credit Card Dues

Right at the top of the list is making sure you start clearing any outstanding amounts on your Credit Card. If you’ve spent the last year struggling to make monthly Credit Card payments, then it’s time to grab the bull by the horns and get down to chipping away at those dues slowly but surely.

Start by allocating more funds towards paying off your Credit Card every month. You could set up an automatic transfer that will divert a certain amount of money from your Savings Account to your Credit Card. This way, when you receive your monthly salary, you’re paying off a portion of your Credit Card dues before you give in to the temptation of spending everything you earn.

Alternatively, you could even consolidate all your debt and take out a Personal Loan. Since Personal Loans come with considerably lesser interest rates than Credit Cards, you could make your loan repayments comfortably over a suitable tenure.

Additional Reading: Tips To Deal With Credit Card Debt

2) Time To Budget

Instead of wondering where you’re haemorrhaging money every month, take a day off after the New Year festivities and plan your budget for the rest of the year. Draw up a budget plan that allocates funds for your day-to-day expenses, utility bills, Credit Card or Loan repayments and even recreational activities. In fact, the art of budgeting can literally transform your financial life in an extremely positive manner.

However, coming up with a budget is the easy part. Sticking to it is a lot harder than it seems. Start exercising discipline right from the get-go. Before you know it, you’ll fall into a sound financial routine that keeps you fiscally healthy and debt-free. Not only will this affect you positively from a monetary standpoint, but you will soon find yourself applying this new found ‘discipline’ to other areas of your life.

Additional Reading: 4 Possible Leaks In Your Budget

3) Start Saving

You’ve probably heard this tired old mantra ever since you were a child, but the older you get the more you need to start paying attention. We understand saving isn’t easy by any means, especially in this day and age where the temptation to spend on the latest gadgets and lavish weekend getaways increases with every passing year. But, strangely enough, it could also be the easiest thing in the world to do, as long as you set your mind to it.

In fact, you could do it without drastically changing your lifestyle. For example, instead of going out and buying the first thing you lay your eyes on while shopping, look for discounts or offers on the same products. You could even bide your time and wait for prices to drop. Similarly, you could even plan your yearly vacation at a time when airline tickets are at their lowest ebb. You could even apply for a Cashback Credit Card to help you save money every time you head out.

Additional Reading: 6 Lazy Habits To Build Your Savings

4) Look To Invest

If you’ve never given investments a second thought all these years, now is certainly the time to do so. Saving and budgeting is admirable no doubt, but growing your money is something you need to think about as well.

Look for avenues where you put your money in that will fetch you good returns over a period of time. You could explore the world of Mutual Funds, or if you’re looking to play safe, opening a Fixed Deposit could be just what you require. There is certainly no dearth of excellent investment options available to you. All it takes is a little bit of research and commitment on your part.

Additional Reading: 5 Questions To Ask Before Choosing A Mutual Fund

5) Reduce Spending

This is probably the toughest of the lot. Limiting or reducing your spending, especially if you’re already set in your ways, requires an incredible amount of resolve. But, then again, it isn’t called a ‘resolution’ for nothing.

As with just about every other financial resolution, slow and steady wins the race. The simple things could make all the difference. For example, instead of heading out every weekend, cut it down to every alternate weekend. Instead of eating out, start cooking at home. Try walking as much as possible instead of using your vehicle. Eventually, not only will your expenses reduce, but you’ll find yourself healthier and definitely wealthier over time.

Additional Reading: How To Cut Down Your Expenses, Save More And Travel A Lot

Stick these resolutions on your fridge or on your door so that they serve as a constant reminder of where your priorities should lie over the coming year. All the best!

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Category: Money Management

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