Looking to manage your money smarter? Here are five important new year financial resolutions to help you resolve to be better in the new year.
We all have issues with money from time to time. Sometimes, it feels as though you can never have enough cash, no matter how carefully you save, or how hard you work. It’s no wonder then, that when the new year rolls around, many people find themselves making resolutions that have something to do with their financial health.
Whether you simply want to have more control over your financial independence, or there’s something in particular that you’re hoping to save up for this year, here are our top financial new year’s resolutions that you can start planning for today!
1. Save More Money
Save more money is probably one of the simplest financial new year’s resolutions out there. The idea is that instead of spending everything you earn as soon as you get it, you think carefully about how you want to use your cash, and potentially put some of it away for a rainy day. The amount of money that you decide to save will depend on your goals. For instance, you might decide that you want to put $2,000 aside for a rainy-day fund, or you might want $500 for a new computer.
Decide why you want to save money and what you eventually want to accomplish with the cash that you save, then build your strategy out from there. Remember, you’ll also need to have a basic idea of how much money you bring in each month, and how much you pay out, so you know what you can afford to save.
2. Get Better with Debts
Want free money?
There are many different ways that you can improve the relationship that you have with debts. For instance, some people simply need to find a way to pay off their debts quicker, so that they don’t have to deal with the expense of interest every month. Other people find it useful to consolidate their debts so that they’re not dealing with multiple payments every time they get their wages sent to their bank account.
One good way to change your approach to debt in the year ahead is to make sure that you’re careful with the loans that you take out. Commit to comparing your options online before you borrow anything so that you know you’re always getting the best deal.
3. Spend Less Money
You might think that spending less money and saving more money is the same thing, but the truth is that it often takes a lot more effort and focus to “spend less” than it does to save. You can set your bank account up to automatically transfer funds from your income into a savings account without thinking about it, but it requires a lot of focus to remind yourself that you shouldn’t be spending on things like takeaways and new clothes when you really want to.
Actively learning how to spend less money is difficult, but it’s not impossible. A great way to get started is to begin tracking all of your expenses. When you can see first-hand how much cash you spend on things that you don’t necessarily need, it’s much easier to change your spending strategies.
4. Create a Budget
A lot of people know that they should have a budget. Budgeting is the best way to make sure that you’re keeping track of your spending and using your money appropriately. However, it’s often difficult to find the time to sit down and actually organize an effective budget. If you have trouble with budgeting, then the new year could be the perfect time to start thinking about how you can adjust your spending habits.
There are even plenty of applications online that simplify the budgeting process for you, by allowing you to organize your spending into different categories and track your expenses automatically.
5. Get More Income
Finally, if no matter how carefully you save, you never feel like you have enough cash, then it might be time to change your work situation. Ask yourself whether you could benefit from applying for a different kind of job, or whether it might be a good idea to take on an extra career as a freelancer in your spare time. You’d be surprised how many great opportunities are available online today.
The more income you get out of your side-jobs and projects, the more you’ll have to save towards your financial goals. If you’ve been lamenting your pay for a while now, take January as an opportunity to do something differently.