Is your spouse or partner not very good when it comes to handling money? Do you always worry about how to go about saving money? Have you ever thought of how you want to be financially placed in the coming year and not repeat your mistakes? Would you like to be free from debt and still fulfill your goals and dreams? This New Year, resolve to be financially planned and independent, to avoid making the same mistakes you made last year. Create a list of financial resolutions that will help you achieve greater financial freedom and fulfill your dreams and goals.
- Make financial planning a priority and understand the importance of the same. This will be the first step that will pave the way for you to achieve goals that you and your partner plan to fulfill.
- Involve your family in financial planning. Teach your children the principles of money and the importance of planning, as this will lead to greater financial responsibility for them in the future. Discuss and debate your financial goals with your spouse for the coming year as this will help you make a cohesive plan that will help you attain your goals. Bring your financial planner home, to begin the process with the entire family.
- Budget your expenses. Spend less on frivolous demands and instead invest your resources wisely. This will help you reach your goals without financial glitches. Budgets allow you to know exactly how much you have to spend while letting you splurge within limits.
- Clear credit card debts and loans. You will end up paying a higher rate of interest for the delay. Another alternative is to create a plan so that you can pay off your debts in installments, without creating a financial crunch for yourself.
- Be frugal when it comes to spending. You don’t always have to buy expensive things all the time. Usually. There is an alternative that you can choose without spending too much of your resources. In other words, do not be an impulsive shopper.
- Invest in the right places. Do not fall for any quick schemes, as they are known to cheat you of your finances. If you are looking to invest, approach a certified financial planner. Remember, saving is just income minus expenses. Once you start planning your investments, also start planning your income and expense along with it.
- Not every want is a need. Distinguish between the two and accordingly plan your finances. A need is a necessity; something that you cannot do without, everything else is a desire or want. If you set out to fulfill every want you have, you will find yourself in a dilemma, as you then won’t be able to satisfy the goals and dreams that will make you happy.
- Long-term thinking is important. Plan your investments based on your future needs. Don’t just live for today. Your financial plan should also take into consideration your requirements as you grow older and your increased responsibilities.
- Avoid the debt trap. Often, we take loans to finance that big dream house or car without considering the impact of the loan becomes too large, you cannot enjoy your life at all, since you will be using your money to only pay off debts and loans.
- Prioritize your dreams into goals. Quantify your dreams. List the goals you will want to fulfill and enjoy in a specific time frame. Draw a line when you feel that you have too many wants and have the ability to say no, when you think that you are crossing that line.
- Start a retirement fund for yourself. While you are thinking of achieving various goals that you want to enjoy for yourself and your family, it is also the perfect time to invest some resources for your future. When you retire, you need to enjoy life and not worry about how the monthly expenditures will be taken care of.
- Don’t fall for fashion fads. But only things that you think are absolutely necessary and avoid buying things because they are “in fashion”. If it not important, do not spend your resources on buying unnecessary things, as it may create a dent in your future plans.
The path to your financial freedom lies in your hands. So, this New Year, create your own freedom; from the daily hassles of planning your money and watch yourself fulfill your dreams and desires! Remember failing to plan is planning to fail.