Top 5 Ways To Be Financially Stable In The New Year

By | December 21, 2018

As 2019 inches closer, it’s time for fresh resolutions and new beginnings. How do you make 2019 better, moneywise? Look no further as this article will help you get closer to achieving financial independence and stability in the new year.

Now that 2019 will be here in a jiffy, have you started planning your travel bucket list already? Are you gearing up for your 2019 reading challenge? Planning on buying a house or a car? Have you finally decided to quit the dead-end job and set up your own business? These are admirable goals for the new year but have you considered improving your finances?

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If 2018 has not been much of a joyride in terms of your saving goals, you can finally start again. If you’re planning on stepping towards financial freedom this year, we have five tips in store for you. Check out these steps you can follow to set financial goals for the new year.

Evaluate where you stand

Begin by accessing your financial activity in 2018. Try recognising patterns in your spending and saving habits. Knowing where you stand is as crucial as setting up your goals.

A surefire way to start is by thoroughly examining your credit report. It is a summary of your financial activities and can give you a proper idea of savings, debts, and investments.

Pro tip: Stay a step ahead by checking your Experian Credit Score for free!

Pay off your debt and clear the outstanding dues

Don’t let debt turn into a burden and prevent you from achieving your financial dreams. Clear your Credit Card dues and stop the interest from burning a hole in your pocket. Begin the year by setting an achievable budget and try sticking to it throughout the year.

Budgeting will give you a fair estimate of your expenses and help you steer clear of the debt monster!

Additional Reading: Keep An Eye Out For These Credit Cards With Zero Annual Fees In 2019

Create an emergency fund

Unforeseen emergencies can deal a massive blow to your planning and make your expenses go haywire. An emergency fund acts like a shield, guarding your savings from drying up. Besides, having an emergency fund in place will improve your financial canvas over time.

Take baby steps. Set up a fund by accumulating a sum, however small, every month. Not only will the amount accumulate over time, but you will be amazed at the long-term benefits of this habit.

Pro tip: Have you considered getting insurance in 2019? Insurance safeguards against unanticipated circumstances that may not occur often, but prove too expensive to manage when they do. Click here to know everything about Life Insurance.

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Regularly access and rebalance your investment portfolio

The market for finance and investments is fraught with risks and changes. Market volatility, the need for new finance goals, overcoming financial hurdles, achieving short-term goals, and other unpredicted changes can impact how you balance your investment portfolios.

Commit to regular discussions with your financial advisor for re-evaluating your investments with fresh vigour this year. Track the achievement of your goals and financial resolutions and upgrade your portfolio to match your goals.

Additional Reading: Best Equity Mutual Funds To Buy In 2019

Adopt money hacks

If you think that money is always leaving your pocket no matter what you do to prevent it, here’s what you can do. Trick yourself into boosting your savings. We have compiled a couple of ways in which you can achieve this.

  • Get in touch with your bank to set up a way in which a certain sum of money will be automatically deducted from your salary account and be transferred to your Savings Account. This will ensure that your funds can grow over time, without you spending them on impulse buys.
  • Use the envelope system. All you have to do is use envelopes to split your cash into categories of expenses. This is an effective way of budgeting and can help you set long-term saving goals.
  • Hide your money. No, we don’t want you to dig a hole and hide it! Keep a small stash of money at two to three spots in your house and keep adding small amounts to each of them. Keeping money under your mattress is not such a great idea! Having a small safe where you accumulate your monthly savings is a good idea!
  • Rent instead of purchasing. With almost everything available for rent, why make a big-value purchase? Furniture, utensils, and even vehicles can be borrowed on rent, thereby saving big bucks. If you have just begun saving and want to take it slow, make small yet smart choices. Consider this, if the rising prices of books bother the bookworm in you, get a library membership! That way, not only will you save on cash, but you will also have an endless supply of books!
  • Keep track of rewards, cashbacks, and offers! Letting your rewards go unnoticed and even left to expire is a grievous sin! You’ve earned the cashback and the reward- it’s wise to put it to good use.

Additional Reading: 3 New Year’s Resolutions To Raise Your Credit Score In 2019

As December 2018 comes to an end, it is time for year-end sales and discounts. So, if you’re looking for some great Credit Card, Personal Loan, Home Loan, and Car Loan offers to get you going, we have plenty of options in store for you. Check out the link below and take your pick!

Additional Reading: Best of Credit Cards, Personal Loans, Car Loans and Home Loans – Dec 2018

Now that you know these awesome and super-easy ways to kick start the new year, begin by setting a manageable number of goals and committing to a financial plan. Don’t forget to track your progress throughout the year!

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