2019 is here. Here are nine financial resolutions for the New Year that would surely up your financial game. Read on to know more.
2019 is here. And it’s yet again time to make those realistic and unrealistic resolutions. This year, along with your usual resolutions, why don’t you make some sound financial resolutions too? Oh, c’mon, stop whining, it’s not all that difficult! We’ve done all the hard work and identified these nine financial resolutions that would totally help you ditch those horrible money habits and up your financial game this year. Here you go:
Pay attention to your credit report
When you want to improve your finances, you must start paying attention to everything related to your money. And this includes your credit report and Credit Score as well. Here are four reasons why this is important:
- Keeps you safe from identity theft that can tarnish your credit history
- Helps you understand your future borrowing potential based on how much you owe
- Allows you to keep a track of your score. Maintaining a high score means better financial opportunities like premium Credit Cards, low-interest rate loans and more
- Builds a sense of financial responsibility. By paying attention to your credit report, you’ll be forced to look at how you’re spending your money and will help you take care of your credit obligations diligently
Save a little extra every month
You’ve been doing a great job putting aside a decent chunk of money every month. But is that enough? It’s NEVER enough! So, increase your savings. If you’ve been putting aside 20% of your income every month as savings, then it’s time to up the ante to 30%.
Additional Reading: How To Achieve Savings Goals
Pay down your debts before the year ends
Debts, bloody debts! This year, why don’t you aim to break the vicious cycle of debt? Not only will you be able to save more for your future, but you also get to eliminate a lot of money-related stress from your life. Plus, if you succeed at eliminating your debts, then you wouldn’t have to worry about struggling to make ends meet or think twice before making your monthly bill payments.
Additional Reading: Help With Credit Card Debt
Conquer your nicotine addiction
This one’s for all the smokers in the house. If you have a smoking habit, then you probably don’t realise how it eats into your income every month. Say, for instance, you smoke two cigarettes a day. And the cost of a cigarette is Rs. 15. You’re effectively spending Rs. 900 – 1,000 extra every month, which works out to close to Rs. 12,000 every year.
The cost of smoking doesn’t end there. Smokers will have to shell out more on insurance products than non-smokers too. And don’t even get us started on the number of health complications that you’ll have to get yourself treated for in the future.
Additional Reading: The 50-20-30 Financial Rule Of Thumb
Build an emergency fund and a retirement fund
These are two really important funds. Most people don’t realise the importance of these funds until they find themselves in dire financial straits or they are struggling to maintain a decent lifestyle post-retirement.
Therefore, along with your savings, you must make it a point to put away a small percentage of your income for the unforeseen times and life after retirement.
Start investing money
The earlier you start investing, the more wealth you will build.
This New Year, why don’t you build a diverse investment portfolio for yourself? If you don’t know how to invest, then learn how to invest. There are a lot of great books and articles about investing available. Or you could simply visit our awesome blog here, we’ve got plenty of articles on the basics of investing.
Don’t have enough time to read and learn? Find a trustworthy expert to help you (you can try us if you wish! Click here to start building your portfolio).
Concentrate on your physical health
Did you know that you can save a great deal of money by just taking care of your health? Hospitals these days charge a bomb for treating medical conditions. And if it is a serious ailment like heart disease or cancer, you’ll probably have to part with your life savings just for the treatment.
That’s why we’re suggesting that you take good care of your physical health from this year forward. All you need to do is eat healthily and exercise at least three to four times a week.
Additional Reading: What’s The Best Health Insurance Coverage For Me?
Get adequate Life Insurance
And the final resolution for 2019 is getting Insurance. The thing about Insurance is that it provides financial support to your dependents and helps them lead a decent lifestyle if something happened to you.
This New Year, show some love to your close ones by investing in an adequate life cover. A cover equivalent to 20 times your annual expenses or about 10 times your annual income should be sufficient.
Start a financial diet
As much as a balanced diet is important to get your body in shape, a financial diet is necessary to get your finances in good shape. Wondering how to go on a financial diet? Start by creating a proper budget. Track your expenses, ditch the unwanted ones, double your savings and investments, etc.
If you aren’t sure about budgeting, then check out this infographic on the dos and don’ts of budgeting.
Resolutions are all about progress. You may not become super rich by the end of the year just because you consistently invested throughout the year. Neither will you turn from a big blob of fat to Ranveer Singh or Deepika Padukone just because you have been hitting the gym thrice a week. But it’s the progress that matters. Just don’t give up. Have a great year ahead!
Psst! We’re here to help you tackle all your financial woes. Just click the link below to get started.