You might have made personal resolutions for the new year, but have you thought of financial resolutions? No worries, we are here to motivate and guide you in making good financial resolutions that can help you get closer to your Financial goals. Here is a list of few things that you need to inculcate in your agenda, which will help you to manage your finance better in the coming year!
Every new year should come with a new motive and a goal. As part of your new year’s financial resolutions, it is a great time to set some financial goals. So, start setting your short term goals, ones that you would want to achieve in the coming year, maybe a new gadget, a car, real estate investment, buying gold, or making an international trip!
The first step is to make a list of your financial goals.
Saving is an important part of life and it is also a gateway to meet your financial goals. But, before making a saving plan, make a spending plan. A spending plan helps in different ways. It not only controls your expenses but also directs you to save a good amount of money. One of the best ways to save money is to divide the salaried amount into clear expense heads. For example, you can divide it into four broad categories/ portions - 30% on house and food expense,
30% for lifestyle, 20% for savings and another 20% for debt/credit/loan, etc.
So, this year set financial resolutions of saving at least
10% of your monthly salary.
Asset creation is an essential part of managing Personal Finance. Every year, plan to build your portfolio stronger by Investing it into right investment options. While there are many traditional ways of building assets like various schemes, savings, fixed deposits, etc., people need to also understand the importance of other unconventional ways of building assets faster. Moreover, invest in things which will appreciate in value and give you good returns for your money. For example, Mutual Funds, commodities, real estate are some options which will appreciate with time and it will help you in building a strong portfolio.
So, as part of the new year’s financial resolutions, start planning to build good assets in life!
Debt creates a lot of stress and anxiety in life. So, this year, make financial resolutions of being stress-free by avoiding bad debts. Debts on an asset side is a good thing to consider, but many people sometimes go overboard by swiping their credit cards. Dependency on credit cards is not a good financial habit. So, if you are already high on debt, pay it off, at the earliest.
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Let this coming year make you feel financially secure! Emergencies could come up when you're jobless, in the form of unexpected health issues/or accidents, etc. A small share of your earnings should go here, i.e. on building an emergency fund. So, include this in your financial resolutions and start building your emergency fund and be financially secure even at your lows!
Resolutions are to make personal life better every year. So, as a part of your financial resolutions 2017, start following these aforementioned tips. Make your coming year—financially better than the last year!
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