Start the New Year with Strong Financial Resolutions
Instead of simply making the same unfulfilled resolutions year after year, why not kick off 2024 with actionable financial goals? Forget the vague promises of the past. This year, let’s focus on taking concrete steps toward achieving financial freedom, one of the most important aspirations we can set for ourselves. Let’s turn our dreams into financial reality.
Let’s make some New Year financial resolutions in the New Year
- Write down the income and expenditure figures. Track your income and expenses.
- Abandon the buying of things you don’t intend to buy.
- Start planning early for big spending.
- Allocate a day or some time each month to review your finances.
- Avoid the ‘buy now pay later’ scheme.
- Set financial goals for the year; Decide how to achieve them.
- Start a SIP as soon as possible. Invest in it carefully and regularly.
- Get a health insurance.
- Find new sources of income. Try to earn extra income through it.
- Bring discipline to credit card usage. Pay bills on time, reduce credit card usage, and avoid unnecessary credit applications.
- Pay off small debts. Determine that one EMI amount will be paid more toward the loan this year.
- Practice the 50-20-30 rule. 50% for daily expenses; Spend only 30% on luxuries and wants; Set aside 20% initially for savings and investments.
If you haven’t thought about your budget in a long time, start thinking about it this year. Make a financial plan this year. You can see and understand the progress in your lives.
This new year is a good time to start making a budget and living by it; Let us strive to be financially disciplined from January 1, 2024 itself. The first thing is to write down every expense we make. Today, there are various money-tracking apps available. We can use them easily and manage our income and expenditure figures. The next step is to start categorizing expenses as needed, essential, and unnecessary. Abandon the buying of things you don’t intend to buy. The first financial resolution is successful if you decide on a budget and try to stick to it.
Raising money is a necessary thing in one’s life. We panic when big expenses come up suddenly. An emergency fund is needed to avoid that. Start building an emergency fund as early as this year. Your emergency fund should be six times your monthly expenses. For example, if your monthly expenses are Rs 50,000, then you need to save Rs 3 lakh as an emergency fund this year. This emergency fund is the first step to achieving financial freedom. This money can be easily accumulated by joining Bank RD or SIP.
Prioritize eliminating high-interest credit card debt or personal loans. Find out the smaller debt that should be paid first. Make up your mind that it will pay off this year itself. If you have only one debt, especially a home loan, decide that one more EMI installment will be paid to the loan this year. Pay bills on time, reduce credit card utilization, and avoid unnecessary credit applications. This year should also bring control to the use of credit cards. First, decide never to use the entire credit amount. If the credit amount is Rs.50,000, do not spend Rs.50,000. It is also important to bring discipline in using the credit card.
The next financial decision to make is health insurance. Try to start health insurance, critical illness insurance, and term insurance. The better you can articulate your needs and goals clearly and precisely, the easier it will be to achieve them. Determine financial goals; Keep long-term and short-term goals in mind and make the necessary investment this year itself.
Starting a SIP is also an easy way to achieve financial independence. Financial literacy is the most needed to do these things. Being financially literate is essential to avoid financial scams and avoid getting involved in financial scams. For that, you should find some time in a week or month to think about financial matters and learn more about financial planning.
Let’s start thinking about retirement this year. If you’re in your 30s or 40s there’s no time to waste. You can start putting money into a PPF (Public Provident Fund) from the beginning of this year. Or start a good SIP for retirement or keeping this goal in mind, invest money in mutual funds. Plan your retirement and enjoy your retirement life in peace.
Now, to recap the above, building an emergency fund, must be in mind start retirement savings, set financial goals, pay off high-interest debt, pay off the smallest debt, improve your credit score, create a budget, automate savings, learn about investments, and review insurance in this year. Don’t be afraid to seek help from a financial advisor or other qualified professional if needed.
May this New Year be a good start to your financial prosperity!