4 Financial resolutions to keep for a wonderful new year
We all have goals for ourselves or for our loved ones and normally when the New Year pops up we make a list of resolutions to follow. This year instead of just promising to be healthier or trying new things, why not do yourself a favour and follow these simple financial resolutions for the new year? You are bound to be happier and more self-reliant by the next year.
Here are 5 financial resolutions for 2016 that will keep you secure and happy throughout the New Year.
- Create a budget
According to the National Foundation for Credit Counselling, only about 40% of adults have a budget for themselves. These statistics show that you must be more responsible and ready for any kind of circumstances. If you are wondering how to plan out your budget, the best thing to do is to gather bills and slips from previous months and make a list of the common expenses in order of their importance. You will obviously put basic amenities like shelter, food, and healthcare first. You can then compare these expenditures with the amount that you earn and eliminate any expenses that you can’t handle. Once you’re done, ensure that you limit your spending power to your budget.
- Save funds in case of emergencies
You never what could happen during the 365 days in a year and that is why it is important to always be prepared. Create a fund solely for emergencies by setting aside money in an account you won’t be tempted to use. These places offer a higher interest rate than a regular savings account.
- Save more by spending less
Everybody needs money to live and eat, but you should try and minimise your costs as much as you can. This could be done by shopping for lower priced products and refinancing a lower mortgage. If you wish to spend less, ensure that you limit your spendings and not purchase things you don’t need.
Spending less and saving more go hand in hand. After you understand your cycle of spending, you will be able to plan how to save more. You must create a foolproof plan that will help you stay in check with regard to the amount you put away. The best way to save is to make it regular and automatic. This means you should create a timetable to make regular transfers into a saving account.
- Close accounts you don’t need
Financial institutions and banks will charge for any service you avail from them. It really isn’t necessary to have a number of checking accounts and several credit cards. Think about it, a bank will charge you money that might seem like a meagre sum. But after a while you would have spent quite a chunk of your funds. Following this financial resolution for the year will save you plenty of money and keep you secure.
Religiously follow these 4 resolutions this New Year and you’ll find yourself financially secure by the time the year comes to a close.