Ultimately, the motive of opting for a financial resolution is empowering your money, to empower you!
Regardless of what goal you choose, a simple resolution can get you there. It has the potential to put you in control of your money and also allows you to dictate its direction – provided you religiously follow it!
To begin with – identify what you want your money to do for you? Only when that is clear, go ahead.
- Saving
If Saving is your intention for the year 2017; be it for a rainy day, a down payment, a dream trip, your child’s education or anything else, you can easily make it happen!
Begin by automating your savings. It’s really hard to do a 'saving' transfer on your own. Automated savings force you to follow through because the cash is drawn directly from your bank before you can get your hands on it.
And if you have just begun with Savings, then you must also remember to create an "Emergency Fund" as well. You never know when a crisis can strike – the money that you put away as savings can save you in good and the bad times. - Paying off debt
To begin with – not all debts are equal. Make a list of all your liabilities, organize them by the annual interest rate, and those with the highest rates (most likely your credit card debt) should be paid off immediately. If you’re paying 19% or 20% in interest each year, your investments could turn out to be a futile effort, because such expenses end up chewing up the profits you make.
Another thing to consider is to stop piling on to existing debt and start living within means. How? By setting a realistic budget for yourself, keeping in mind your income and expenses! And sticking to it.
And finally, as with savings, you could automate those debt payments as well! - Spending Less
Here’s the trick – first, keeping in mind your income and expenses, define what a bigger purchase is. Step 2, whenever you go out to shop, if a situation arises where you need to make a bigger purchase, give yourself at least a 24-hour waiting period, to make the decision. Also ask yourself what you’re giving up in return of this purchase. How important is it for you? Whether you really need it or want it? - Bonus Resolution: Earning More
When we talk about improving finances, it is a human tendency to turn to 'rigour' measures like paying off debt or spending less. What people rarely consider is - making more money. When in fact, this should top the list.
So you could figure out ways to enhance your earnings - either by putting your time to better use or by putting your money where it would earn you more.
Whatever the case– always remember, all of your financial dreams are achievable; the trick is to set your sights on a goal, and have the “resolution” to see it through.
So what’s your resolution for 2017?