Winter is here! It’s December and we are all set to wrap up another year. The start of a new year brings a host of new resolutions – some to keep, some to forget. Let’s talk about some resolutions that can help you financially in the long run and benefit you substantially.
The year 2021 was not very different from 2020. We faced some major economic challenges in this pandemic-ridden world that left us amidst a farrago of doubts. Decisions associated with money in times like these are critical. If your new year resolutions don’t have plans that save and grow your money, you might land into trouble in the long run.
So, what can we do to avoid these troubles? Read on, Macduff!
Different types of expenses have gone down over the past couple of years. People have mostly been indoors. Reductions have been spotted with respect to entertainment, travel, and dining. Now that things are slowly opening up, don’t go overboard with your spends just because you couldn’t spend enough when the pandemic was at its peak. Ease into things and ensure that you save enough for the days to come.
This is something that must be done on priority if you aren’t doing it already. ‘Tis the season and your bills are about to shoot up for sure! Before you pile on expenditures on your credit card and max-out the limit, clear the dues. This will help you know how much you can afford to spend after paying your bills. Moreover, you will not attract any interest payment for paying minimum due amount. Brownie Points: You will build a good credit score in the process.
In order to tackle an unforeseen situation with minimum economic stress, you must build an emergency fund. This resolution will help you build a cushion that offers you a safer tomorrow. The New Year is a very good time for you to start building emergency funds. Ideally, the emergency fund should have enough to sustain you for 3 to 6 months without facing any problem. Invest in mutual funds or any other instrument that yields high returns for you.
It’s a great idea to sow ideas associated with saving money in the minds of the young ones. This will bring in financial discipline early in their lives. Christmas presents are not the only way you can gift your child. Teach them how to value money in the present – probably the best present this New Year for them to build a better future.
It is of utmost importance that we set goals in our lives and work diligently towards meeting them. Financial goals will help you visualize things that you can do to save your hard-earned money and the reap the benefits of saving it. May it be investing in SIPs, clearing a loan early, or planning a vacation, financial goals help you achieve what you want.
Bottom line: There are so many ways to save your money and also grow it. Choose how you wish to do it. The most important part is to abide by your financial resolutions to bring in a healthy change in your money habits. So, are YOU ready for a fresh tart on Christmas and a fresh start this New Year?