The New Year almost upon us and you are probably planning a number of resolutions that you are hoping to adhere to. The New Year is not only a time to review your personal & professional goals, but also a fresh start for your financial goals.
January is the perfect time to review and assess your current financial plan and decipher ways in which you could improve on it in the New Year.
If you want to change the way things went this year, it’s a good idea to set out clear and concise financial resolutions for the New Year to ensure that your financial choices are beneficial to your future and that you don’t end up dealing with an overwhelming debt or expenses.
Here are a few financial resolutions to get you started:
1. Create an emergency fund
It is important to create and build an emergency fund so that you are prepared for a costly unforeseen circumstance or unplanned expenses. Your goal should be to try and save at least three months’ worth of living expenses so that your budget is not affected if an unexpected cost comes up.
2. Pay off your debt
If you receive any extra money in the New Year, instead of splurging on something that you don’t really need, put the money towards paying off your debt to lighten your financial load. Putting a lump sum towards your debt will lower your monthly debt repayments, freeing up some of your income to add to your savings fund or put towards other expenses.
3. Reduce your monthly spending
Take advantage of a number of ways to reduce your financial obligations from paying off accounts earlier, to buying store private brands or generic options, reducing or eliminating entertainment subscriptions and more. For a detailed guide on how to do this, check out our post –
10 Tips To Reduce Your Monthly Spending
4. Stop bad financial habits
We don’t all learn to use money in the same way and it’s easy to get used to a routine with bad financial habits. Things like ignoring interest rates, paying debt with debt, taking out payday loans and more should be stopped in the old year and left behind. The new year is a chance to start fresh. For more details on bad financial habits to kick for next year check out our post – Quit These 10 Bad Financial Habits To Avoid Debt
5. Conserve your resources
In the new year, you need to look at cutting out waste, from looking at ways to conserve, recycle and be more environmentally responsible. It’s not only great for the environment and the future but great for your budget too. If you need more detail on how to conserve resources check out our posts on:
6. Make it through the holidays
Learn to pack light during your holidays and don’t rely so much on the credit card. This one may be hard since the end of the year is the time to let your hair down and enjoy everything in excess but resist the urges and make sure you’re prepared for next year. If you are going to spend big during the holidays make sure allocate yourself a holiday budget and stick to it. For more detail on how to make it through the festive period check out our post – 10 Ways To Stretch Your Holiday Budget
7. Become recession resistant
The South African economic growth has been stagnant over the past year with growth of less than a percentage point. Economic times are tough for many and this puts pressure on homes and the workforce. Making sure you can handle these depressive economic times is important if you want to do more than live from paycheque to paycheque.
For more detail on how to make it through the recession check out our post – 10 Tips For Surviving Recession
8. Cut out money mistakes
When it comes to money there are plenty of half-truths and whole lies that have become commonplace especially int he middle-class purchase behaviour and the way we see and approach money. Make sure you’re not just another follower and lead yourself and your family in the right direction. Learn how to save, manage debt effectively and how to use financial products to your benefit. For more detail check out our post on – 8 Money Mistakes The Middle Class Keep Making
9.Slim down your waistline
Diet is not just good for your body but great for your pocket as well. You will save a considerable amount of money if you plan and pack a lunch to work a few days a week instead of eating out or grabbing a take away. Packing your own lunch is a cheaper alternative but you will also save in bank charges by not swiping your card or withdraw money every day. This tip will help reduce your weight and increase your savings, its a 2 birds with one stone.
10. Reduce your reliance on debt
If you rely on debt like loans, accounts or credit cards you need to begin to wane yourself off this type of money and start spending only the money you bring in as income. In the new year, you need to learn to not leverage your future income to buy goods and services. For more information on how to get off credit check out our posts:
- 12 Ways South Africans Can Handle Credit Card Debt
- I need a loan to pay my debt in South Africa: The Pros & Cons
Wishing you a prosperous new year
Take some or all of the advice in this post and we’re sure you’ll have a new year with less debt and more savings, which is an exciting prospect for many. So set those goals and stick to it and if you need help the ezDebt team is here to assist you.
Manage your debt effectively
If you still need help with your savings and you’re feeling overwhelmed by your current financial situation, feel free to contact us. To Speak to one our consultants about debt review contact us here.