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5 Personal Finance Resolutions for the New Year

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People & Lifestyle

5 Personal Finance Resolutions for the New Year

With the New Year ringing in, it is now time to look at your finances and evaluate how you stand this year. The New Year gives you a chance to look at what happened last year and provides the extra motivation to make your life better, embracing new adjustments so that you live well off.

That is why New Year resolutions matter so much to everyone. Some may have small goals to achieve while others may have more expectations from 2019. So what are your resolutions this year? Buying a new home, a car, or paying off your old loans and become debt-free. Though it’s easier said than done, you need the push to march forward to improve your personal finances this year and lead a happy and satisfying life. Are you wondering about your priorities? Which goals to realize at the first half of 2019 and which later? Worry not. There is plenty of time to achieve what you want. There is no need to hurry. Take your time and decide what things you want to be sorted first. Even if you achieve four to five goals, you’ll be surprised to see the results. Therefore, if you have some personal finance resolutions to make, here are five of them to start with.

  1. Start saving $1,000 monthly

Did you know that less than 40 percent of the US citizens have just $1,000 in their savings account? It seems a little surprising, right. According to an article published on https://www.forbes.com, every financial wellness program lets you save at least one thousand dollars every month provided you have good spending habits. You can put aside this fund in an emergency fund for unforeseen situations in life. Avoid spending the money on restaurant bills or buying expensive movie tickets. You can always pay for them when your financial situation improves later. Saving $1,000 overnight is not possible, but you can always put aside $34 every day to save a thousand bucks a month. If you try this religiously, you can save that much each month. Just imagine how much you can save at the end of the year.

  1. Put Cash aside for Your Golden Years

You might be wondering why to think about your retirement now when you are still young. For example, if you are 25 and have a well-paying job, start saving from today. Keep saving little amounts each month for your golden years. Remember that by each passing year, you are one year closer to your retired life. Though statistics show that 78 percent of Americans are not worried about retirement, and therefore without much retirement funds. You can change this practice. Start saving right away without any second thought. Even if you save little amounts, there is no harm in it. If you have not started saving yet, open retirement savings account at your nearest bank and start saving money. When you finally retire, you will find a lot of money in your account, besides other retirement plans, if any. You can use the funds to travel around the world or spend happily during the golden years of your life.

When keeping money aside for your retirement, pay off your old loans. Alternatively, you can use some of the savings and take a consolidated loan to become debt-free for the last time. You can check out the websites of lending companies and look at the debt consolidation ratings to make a wise financial decision.

  1. Control Your Shopping Habits

Just because you have money, it does not mean that you will spend all the money purchasing stuff that you do not need. You should buy only the necessary items. Avoid buying luxury goods. For example, if you have a smartphone, do not waste your hard-earned money on the purchase of another iPhone just because it is new in the market and is a craze. Spend money on groceries, paying electricity bills, and credit card bills. A visit to the Disney Land may come later in the year when you are financially stable. Keep a check on your shopping spree. For example, try a two-week shopping ban and avoid spending even a dollar for a couple of weeks. There is no pitfall about this saving strategy, only benefits. This way, you will learn to control your expenses, reconsider your consumption habits, and save some cool bucks for emergencies. And when you have saved enough reward yourself with an outing with your family to an affordable restaurant close by.

  1. Get Rid of Unwanted Clothes in Your Closet

Did you know that de-cluttering your household stuff, be it old living room furniture or clothes in your closet, has a positive effect on your finances? Selling old clothes and stuff will not only help you make some money but also keep your house spick and span. It will free up space and create a healthy living environment in your home sweet home. For instance, a wardrobe full of clothes you wear and love to put on is your best New Year resolution to improve your finances. If you keep de-cluttering a little each month and sell the stuff, you will end up saving sufficient cash at the end of the year. You can always use that money to pay off your grocery bills instead of withdrawing cash from your savings account and compromise on the interest that accumulates. Try this experiment, and you will not repent it. These little things matter and make a difference to your finances.

  1. Save Your Spouse’s Salary

If you are a working couple, save one partner’s salary. Try to save the full amount. If not possible, do not spend more than 25 percent of your spouse’s paycheck. Live only on one person’s income and keep saving the other person’s income for future emergencies. You can use that amount to buy a new home or a car. But do not spend both your salary to run the household. It may take some time to decide, but implement this strategy in 2019.

Conclusion

Now that you know about these resolutions, start implementing them gradually. Soon you will realize what difference these ideas will make to your personal finance.

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Ameyaw Kissi Debrah, known professionally as Ameyaw Debrah, is a Ghanaian celebrity blogger, freelance journalist, and reporter.

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