It's that time of year again to set New Year’s resolutions. For the most rewarding resolutions, dedicate this year’s important decisions to managing your finances and expenses, because in a year from now the difference it makes in your life will be significant. Here are a few guidelines to help you come up with yours.
Set a Saving Goal
If you are planning to buy a house, a new car, or to travel around the world, it’s time to start saving money. Take your time and make up your mind, set your priorities, and decide on your saving goal and how long it will take you to reach it. A realistic goal is key for achieving what you want throughout the year.
Create an Annual Budget
The new year is the perfect time to start a well-planned annual budget that keeps track of all your usual expenses. Your annual budget can be divided into 12 months and cover your rent, your loans, and all the other expenses that you expect on a monthly basis. Always leave some room for emergency payments that you may have to cover during the year. Make use of smart applications to help you stay on top of your budget.
Less Now, More Later
Consider contributing more generously to a retirement fund. The more you save now the more you will have to spend when you are older.
Cut Down on Unnecessary Expenditures
Rethink your subscription services, and only keep the ones you use often. You can also reconsider your unhealthy and costly living habits like dining out or impulse buys. While you're making resolutions, quitting smoking could do wonders to your wallet.
Extra Time Can Mean Extra Money
Enjoying your hobbies or meeting friends is always tempting, but use some of your free time to tap into another source of income, even if it's just a side gig. There are plenty of freelance opportunities online, whether you are a designer, an accountant, a translator, or a teacher. With lots of online services facilitating quick, easy and well-paying jobs, there should be no shortage of opportunities.
Shopping Tip: Keep a List
Shopping can get quite messy if you don't have a clear idea of what you need to purchase. Keep a list of your needs every time you go to the mall or department store, so you don't over spend. This can get a little more difficult if you're shopping online, but wishlists come in handy to help you save your favorite items for another time when you can put more thought into buying them, so you don't regret it later on.
Pay off Your Debt
In 2020, consider paying off your debt, especially your credit card. You can set a plan with your financial institution to achieve this goal over the course of the coming years.
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