Financial Resolutions – Planning for the Next Decade

Financial Resolutions – Planning for the Next Decade

Christmas is over and the New Year is here!

Aren’t you making a resolution for 2019? It’s a sad truth that the majority of all resolutions fail, mostly by the end of January. But the coming year, let’s hope you won’t be futile. Most resolutions fail, as they aren’t the right ones and one takes them due normally due to compulsion or comparison with another. A realistic resolution can be achieved if one has the ability to recognize the right one that could make his life better by proper planning.

Choosing the Right Resolution is tough, but not impossible. One’s goals have to be smart. We normally see resolutions and plans work well for management and companies. But trust me; it works very well for individual and families too- provided you are on the right path.

Resolutions are different from person to person, as the goals are different. A few common ones are -

a. Spending more time with loved ones, friends etc

b. Planning to reduce time spent on Social Media and over usage of mobile phone/ computer

c. To lose weight and exercise/ yoga/ meditate

d. Reducing the use of food delivery apps, avoiding junk food etc

e. Volunteering for Charity organizations

But surveys prove most wish to have a healthy diet, exercise more and to save/ earn more MONEY. Controlling one’s own finances is a great feeling. But for an individual, to reach his short-term and long-term goals, he has to set Financial Resolutions at the beginning of the year and stick to it.

Plans are easy to be made and easy to be broken- they are hard to maintain. But don’t worry!!! 3 simple and practical steps will help one to have a better year ahead.

Top 3 Financial Resolutions

1.  Save more-It is the top financial resolution for everyone. Make savings automatic. Always have an emergency fund that could cover 3 to 6 months’ worth of indispensable expenses. It’s also essential to save for the future. The best example for this is Systematic Investment Plans (SIP). A small amount goes regularly to the investment directly from the Bank Account regularly every month.

2. Pay down high-interest debt-This is another major resolution. Use a Debt payoff calculator for help. It is quite tough to pay off the debts little by little- but gradually one can see the debt level coming down. One should always finish off the debts that have the highest interest rate first. Same way, the lowest balance should be paid off first.

3. Spend less-Reducing the expenses can be another major resolution. Limiting the use of Debit and Credit cards is the best way, to begin with. It is easier to spend physically, as they get to spend only what is available and therefore, spending can be adjusted appropriately. This can be followed by writing down the requirements and cross-checking if it’s indeed a requirement or not before purchasing.

Moral:

While building a habit, one has to ensure he is building it for the coming decade and not for just a couple of months. Have the Financial Plan in mind and stick to the resolution by tracking your growth. So, get ready for a successful 2019, followed by many wonderful years with the right Financial Resolutions.