New Year’s Resolutions: Moneywise!
The New Year is upon us! It’s time to get down and dirty to formulate some money management resolutions for 2015! Is 2015 going to be the year in which you get financially fit?
State your goal
While this may be obvious, you might be surprised at how many people don’t explicitly state their financial goals (i.e. I’d like to have more money, instead of, I’d like to have enough money to go on a vacation).
And it stands to reason that if you have a much smaller chance of reaching your destination (financial or otherwise) if you’ve not identified where it is!
Set a budget
Lay out all of your debts against your income. Is there a huge mismatch? How can you change the dynamics so that the gap shrinks?
As a consumer, you’ve got a host of financial tools at the ready to help you get where you need to be- from debt repayment programs, to saving for the short term and investing for the long term.
Knowledge is power, and nowhere is this more accurate than when it comes to reaching your financial goals. Ask questions. Read. Become an expert on your own financial future.
While it is not completely realistic to always live a plastic-free lifestyle, you will free up a lot of cash flow if you’re not directing payments towards mounting debt.
Living by a cash-only rule will limit your spending, because once it’s gone, it’s gone. Plastic however, puts elastic bands around your spending.
Set a timeline
Paying down debt or building up savings does not happen right away. It’s a long-term process that takes commitment and modest (or major, depending on the case) changes that make take a little time to stick.
When you are setting your goals, set short, long and medium term goals, which will go far to encourage you to keep going, as well as give you the opportunity to asses if your plan is working or not.