A New Year is another opportunity to make a difference. It’s a time to start over again or do things differently. As we think of resolutions, it’s a time to evaluate how we did the past year; the rights and the wrongs and come up with fresh strategies on getting the most out the ensuing year.
The New Year’s resolutions are personal and customized because they come from an individual’s past experience, so are the financial resolutions. As one is trying to save up more and acquire a new asset, the next person wants to pay all their debts and be free. Every person’s circumstances are different and so is the approach on resolutions. As much as our financial positions differ, the goals have something in common. We want to manage our finances better and thrive where we failed.
It is always challenging to keep up with New Year’s resolutions. In fact, statistics have shown that more than 80% of the resolutions Americans come up with for a new year fail by February. This does not mean that they give up. Here are some ideas and tips of the common objectives that can help you achieve your goals:
Start by Getting Organized
Financially, getting organized entails taking some time to examine your income and spending. How much money are you making and where or how are you spending it? This the perfect starting point. It also means figuring out what you really need to achieve financially and how long you suppose it would take you. For goals to be attained, you must recognize your current financial situation and the pathway to getting where you want to be by the end of the year.
Getting started is never easy but it’s possible. Begin by going through your statements, credits cards, and tax forms if you need to. If you think financial training will help you do better, take a bold step and get the training you need to get your finances in order. Know your liabilities and assets. Get a clear picture of your expenses and income; this will shape up the starting point.
Look for opportunities to save more money
No doubt that 48% of the American population put saving money as one of their top resolutions as they ushered in this year. Be it through retirement, emergency funds or stashing away money to buy an asset, most people wanted to save more. Saving is however easier said than done.
There are proven ways that can help you out such as an automatic deduction from your paycheck or systemized transfers to your savings account from your checking account. Once you form this habit, you can achieve your savings goal.
Paying off Debts
Reducing debts by paying them at the right time can sometimes be overwhelming, but it’s important, especially with high-interest loans. Different approaches are required for different types of debts you may have accrued. Strive to ensure that your installment debts are paid on time to put you on a good credit rating. This could be your mortgage or your student loan.
Set your priority on revolving debts. An example of this is your credit card debt. This is because the interests may spin out of control if it’s left unpaid for long.
Take Control of your spending Habits
Overspending is not only tempting but also very easy, especially when you are using credit cards. If you bought some of the things you buy on your credit card using cash you’d be surprised how much you tend to lose. Discipline is essential in an attempt to curb your spending. There are software applications that can keep a track of your spending.
To reduce your overall spending, start by knowing how much you are spending and cultivate a habit that puts your spending under control.
We are already a month into the year, but it is not late to rethink and upgrade your strategy. Do not accept to fall behind due to lack of clear ways to achieve your goals. If you feel swamped, it is time to get back to the drawing board, either through modification of your resolution or by drawing up fresh strategies. Your plans may not run smoothly all through but significant improvements and progress will have been made at the close of the year.