A New Year comes with a bag full of emotions, challenges, and opportunities, and it’s completely up to you how you take things in the right manner. For most people, it’s usually a time to embrace onto some financial goals and shed off the rule of extra spending habits.
When it comes to managing personal finances, a new year is a perfect time to make big strides towards attaining financial freedom. In general, getting personal finances on track is one of the most popular New Year’s resolutions, but, hardly anyone can keep the resolution last longer. Well, going with the flow, first and foremost it is essential to set some realistic financial goals in a proper disciplined manner. So, if you are starting to take steps forwards financial freedom in 2019, here are few tips that will help you stick to this year’s financial resolution.
Know where you are – Before setting up financial goals, the first thing to know is where you currently are. Take a look at your savings, debts, and investments. Even though you might have stressful financial status, going with the right plan can help you meet some realistic goals in the coming year.
Set a budget and stick to it – It happens with most of us that we spend first and regret later. So, instead of regretting things later, it’s best to set a specified budget for each expense like housing, food, fuel, and utility bills and make sure you stick to the plan.
Avoid getting into a debt trap – Though the market is flooded with several loan and credit schemes, it is not suggested to get into the trap unless you are in serious need of finances. Even if you are getting a loan or credit, make sure to negotiate for the lowest rate of interest.
Stay organized – Accept it or not, a lot of your income portion goes into celebrating anniversaries and/or achievements of your loved ones. Thus, staying organized is a critical step towards keeping financial resolution this year. Make a list of the important anniversaries and festivities and keep a separate budget aside for each. When it comes to your personal budget, the more organized you are, the better will be your finances.
Keep emergency fund aside – Emergency can occur anytime, but, you need not to panic by keeping a portion of your income separate for emergency needs.