Now is the season of New Year’s resolutions. Many people would want to become wealthier in 2024, and you may be one of them. And for that, you will need a robust financial resolution that can make your way through the year.
To achieve this, you need to make some adjustments to your finances as early as now. As you become better off, you will need to visit money lenders less often. Delve deep into this article that has a lot in store for you!
Why Do We Need A Financial Resolution?
Fixating on a financial resolution is essential if you want to gain economic success. After setting up these goals, simply take note of them and follow them accordingly. Not only does it help you stay focused, but it also makes you more confident in life. Here are 3 good reasons to make a financial goal and follow it accordingly:
A. Gives you a direction
We all might earn in life, but not all of us know how to save our money or invest it in the right direction. By a financial resolution, you get a direction of what you want to achieve. Or what does success mean to you?
If we divide our earnings year-wise and categorize them into savings, expenditure, and investments, we are likely to get a better idea. There’s a comprehensive understanding of where all the money is going, and you don’t have to wait crying for your next paycheck.
B. Establishes Different Strategies For Different Goals
It is a known fact that not all financial resolution works on the same strategy. Hence, you are likely to explore the fact that multiple goals will require different strategies to work. If you have modest goals, it is better to save only a bit every month.
On the other hand, if you have a big goal like buying a house or a trip to Europe, you might need to save for years.
C. Shapes Your Career Goals
Ultimately, every big or small financial decision has some impact on our career choices. The same applies to financial resolutions, too. Isn’t it true that we all have ambitions toward life? So, nothing should stop us from achieving that.
If you start early in your life to work towards your career goal, chances are you will succeed. and trust me, 2024 is the year to flourish, to grow, and to excel, fiscally. Make the most of it by saving, investing, and spending right!
5 Financial New Year’s Resolutions For 2024
Building wealth does not have to be daunting. You can start small and build your way up. Begin the year with these five financial New Year’s resolutions and notice your career going up. Check them out:
1. Start budgeting
The first thing you need to do is keep track of where your money is going. If you’ve been living the past year without a budget, then you need to make one this year.
If you think creating a budget is too tedious, start with the basics. First off, set the amount of money you want to spend for your basic needs, such as rent, food, utilities, and transportation. Then, set aside some money for savings and emergencies.
If you still have some money left, you can use that for leisure and buying things that you want.
2. Prioritize your emergency fund and savings
People often get into financial trouble because of unexpected events that incur huge expenses. Examples of these include a sudden health emergency, a family member in dire need, or getting laid off. If you do not have extra funds for these emergencies, you may be forced to take out loans.
But with an emergency fund, you can avoid getting into debt. Build an emergency fund that’s at least six times your regular monthly income. So if, for instance, you earn S$5,000 per month, your emergency fund should be at least S$30,000. This way, you can remain financially stable even if an emergency hits.
After you’ve built a substantial emergency fund, continue setting money aside for your savings. This way, you can have the money you need for future big-ticket purchases, like a home, a dream vacation, or medical assistance for your parents.
3. Find ways to minimize expenses
Not everything you spend on is essential. Review your expenses and find out which ones you can cut down. For example, if you have a habit of eating out every day, you can reduce it to just three times a week. That will save you a great deal of money every month.
Another common thing that sucks away money is unused subscriptions. It’s easy to subscribe to things like streaming services these days, especially with free trials. But often, companies charge your credit card automatically after the free trials have expired, and you may not be aware of it. For this reason, review your credit card statement and find out if you have any unnecessary subscriptions. Cancel them immediately if you find any.
4. Focus on needs
Impulse buying can drain your money in a heartbeat. To avoid this, be more intentional with every purchase you make. Think about whether you really need something or not before buying it.
Here is a good rule of thumb to follow. Before you buy something expensive, give yourself at least three days to think about it. Do you really want it? What benefit will it give you? What things will you have to set aside if you buy it? Is this more important than the things you will have to set aside? Consider these questions carefully, then after three days, ask yourself if you still want it.
5. Start investing
In any case, make sure that you know what investment vehicle you’re putting your money into. Invest only in things you understand well. Also, it pays to study the financial outlook of certain sectors, like real estate, before investing in them. Choose well-performing markets to maximize the returns you get from each investment.
This 2024, start your journey into financial freedom. Follow the five tips above and you can make reasonable, achievable New Year’s resolutions for your finances. Remember, part of being wealthy is being wise with your money.
So, that’s all about this comprehensive guide. Tell us your financial resolution in the comment box below as we are always delighted to hear it from our readers.
Thank you for reading till the end!