If you are someone who makes new year’s resolutions, consider including financial goals in them. To become financially independent, having financial goals in mind is highly critical. Even though these financial goals are for the new year, you can gradually start working on them right now. Below are seven financial year resolutions as you step into 2023.
1. Create A Budget
Meeting any financial goal can go wayward without a budget. Therefore, we recommend you use an app to create a budget. Numerous free apps are available in Google Play Store and Apple App Store, which you can install to create a budget. After creating a budget, keep track of your income and expenses. You can use budget techniques to implement the budget too. Also, categorize your expenses to clearly show where you can cut costs to save more money.
While creating a budget, you can list fixed expenses like rent and groceries. At the same time, stay flexible with your expenses by including flexible expenses like Lottery Sambad tickets or eating out at a restaurant. Then, compare these expenses with your income to ensure you can stay within your budget limit.
2. Do A Daily Money Check-In
Instead of keeping weekly or monthly check-in, create the habit of doing five-minute money check-in daily. For instance, if you are investing in Dhankesari on a particular day, log in with the same information in the money app to keep track of the expense.
Daily check-in lets you know where you are spending your money and whether it is a necessary or unnecessary expense. Also, a daily check-in helps you reflect on your financial habits and work on improving them each passing day.
3. Save More Money
Unsurprisingly, one of the top financial new year resolutions includes saving more money. You can save your money in multiple ways. Firstly, you can start by cutting down on unnecessary expenses. Secondly, you can be mindful of the things that you are purchasing. Also, when buying any necessary item, look for discount coupons and compare the price from several sources to ensure you get a good deal.
When saving, if your income allows, save 20% of your total income. It is a good idea to segregate these savings into an emergency and sinking fund.
4. Pay Off The Debts
Debts, especially bad debts that include high interest, should be scrapped as soon as possible. Debts not only impact your net worth but also steal your mind’s peace. Therefore, paying off bad debts should surely be on the top priority list. Furthermore, saving and investing your money becomes comparatively easier once you have paid off the debt.
5. Start Investing
If you not only want to save money but also grow it automatically and generate wealth, you need to invest. If you are new to investment, we recommend you become financially literate and talk to experts before investing. Furthermore, try to diversify your portfolio to minimize the risk that comes with investment. Also, to get a good term, engage in long-term investment.
6. Build An Emergency Fund
Emergencies are always unexpected. Therefore, to avoid the financial burden of the emergency, consider contributing a certain sum of money towards the emergency fund. We saw numerous crises in the past two years, including the pandemic, and now, with the recession, layoffs have become common. Having an emergency fund is essential to stay safe in such a situation.
It would be best if you tried to build an emergency fund that can cover your basic monthly expenses for six months. So before investing your money, build an emergency fund.
7. Open A Retirement Plan
If you are young, having a retirement plan might be the last thing on your mind. However, it is wise to start saving for your retirement as soon as possible. Investing in retirement is an investment in the future. In addition, many companies also provide tax rebates on the money saved for retirement. So look for the best option available out there and start investing for your retirement.
To achieve all the financial goals, you must create a long-term plan and divide it into short financial goals. It will allow you to become financially independent without feeling overwhelmed. Remember that achieving even short-term financial goals can be problematic every now and then. However, the key to achieving financial independence lies in consistency. Therefore, even if you miss the financial goal of one particular month, try to find your track back again.