3 Practical Tips to Help You Achieve Your New Year Financial Resolutions

Published January 28th, 2021 - 04:00 GMT
3 Practical Tips to Help You Achieve Your New Year Financial Resolutions
Using words such as "budgeting" or "money management" has been quite underrated in many cultures. (Shutterstock: photobyphotoboy)

While most people are looking for tips that help them make money, not that many are interested in learning how to use it wisely to achieve their goals.

Saving money has always been associated with eliminating unessential items that we like to purchase, but this is not entirely true. Words such as "budgeting" or "money management", as underrated as they seem, are some of today's most critical survival skills, in a world rocked by economic crises and an abundance of products we can spend money on.

Besides individuals' efforts that aim at mastering the art of money management, governments and experts have also been trying to introduce financial planning programs into the educational system, in the hopes of equipping future generations with such important expertise.

In Jordan for example, a Financial Education subject has been added to curricula in thousands of public and private schools across the country since 2016, teaching 7-12 grade students everything about the different approaches to managing expenses and saving money.

Prior to the coronavirus outbreak, financial literacy workshops were routinely conducted in UAE schools, usually in cooperation with money-focused entities, such as banks, financial organizations, and major local businesses; introducing basic financial concepts to young students before they embark on the challenges life will bring their way in the future.

Realizing the significance of continuously tracking expenses and prioritizing needs, we are presenting a number of tips and tricks that can help individuals set their financial plans for a month, a year, or even longer, so they live by the standards they dream of without going broke.

- Budgeting is actually more, not less

A huge part of starting a more managed financial life is to change the way we think about the word "budget". A budget is not supposed to limit a person's access to things they like, it rather provides a more organized way that allows them to get everything they want, one step at a time.

Long-term budgeting can serve individuals in purchasing everything they want without overwhelming themselves with debt or loans that will take forever to be paid. In a way, budgeting means getting more, not less.

- "Needs" vs "Wants"

It is one thing to need an item because it is very essential for your daily life, and another thing to want to purchase an item you can totally live without. Your financial plan shouldn't necessarily cross off your wants, it might just delay them a little bit as you save money for them.

- Technology can lend you a hand

Luckily, in this day and age, there are plenty of smart apps that can help novice financial planners get the task done without getting lost in the process. These apps help track expenses and bank accounts on an individual level or amongst couples and groups. 

Amongst the most used apps are MintGoodbudget, MonshareCopilot.

What other tips do you think can help people who want to start managing their money more wisely?

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