For any person, setting resolutions is very easy but when it comes to committing to the resolution, it is whole different ball game. Various sorts of complacent behavior cause us to divert from our goals which result in nonfulfillment of our resolution. To avoid such situations we need to set realistic goals for ourselves which can be achieved by giving certain amount of efforts.
One such resolution we must take this year should be regarding our financial well-being. Being financially strong is one of the prime concerns of our lives.
Here I have provided you with certain pointers which might help you to keep your wallet full this year. So, try and follow these certain resolutions to have a strong footing in your life financially:
Pay back all your debts
The initial resolution which can make you financially strong is to payback all your debts. Well it depends mainly on your financial condition and the amount of debt which is still pending. The amount of debt which you owe and the type of debt which you are under along with all your financial details such as your disposable income, interest rates of the debt can vividly describe how soon you can pay off your debts and be financially stable and free.
Divide all you bonus incomes
Whenever you receive any extra income throughout the year try to divide it into various parts and the carefully determine how to use them. One such method of dividing your extra income would be to divide it by the rule of thirds where one third of the extra money can be used to pay any of the past debts. Another one third can be used for the present where you use the money to make some personal purchases or current investments. When rules such as these are followed throughout the year then your debt will reduce to a large extent and savings will slowly and steadily increase.
Gain Knowledge about financial sector
Lack of basic knowledge in areas such as interest calculation, stock buying options etc is a prime cause of failure in effective money management. So, this year make a resolution to gain the requisite knowledge to deal with such matters. This can be done very easily by spending around 5 to 10 minutes every day browsing through the headlines of various newspapers and catching up on all the news which can help to build a proper know-how about the money market.
Assign a proper budget for yourself
Every month you always face a similar situation when you have re-calculate, all your spending exceed their allotted limits and you face some serious financial constraints. To counter this problem, you always need to stay within an allocated budget. One such technique is to write your own self a check which assigns some fund you can spend throughout the month. This would ensure that always you have some money which has been set aside for investing for the future. Anything around 6% or more could be a great initiative to follow. To ensure success by using this technique, one can even use an additional bank account where you can transfer your monthly expenditure. It will be similar to the mortgages, electricity and phone bills which you pay every month without any default, now you will be also paying some money to yourself.
Initiate an Emergency Fund
Starting to invest for your very own emergency fund for your time of need could be the best New Year resolution. There is no certainty regarding your financial condition of your future and you always have to be wary about this. For such situation an emergency fund could solidify your financial footing to a great extent and instill great confidence among you and your family. In today’s world one or two months of saving is not a substantial amount. So, you need to build a fund which would be helpful during long times of hardships and one with which you could be comfortable enough.
Avoid overdependence on your Credit Card
We most often spend excessively on impulsive purchases, which range from the simple chocolates at the supermarket to clothes from showrooms. This deeply affects your bank balance which in turns affects your financial security. So, take a resolution to ditch your credit card and plan your spending more wisely. Try and plan your spending and withdraw only that specific amount of money which would be enough for you for a month. After this always try to make normal cash purchases.
In today’s world being financially strong and stable is of utmost importance and to ensure this you need to proactive in all money matters.