It’s officially the New Year, so it’s time to set some financial ground rules for achieving your goals. To help you get started, here are 4 financial resolutions you can arrange to help improve your financial outlook this year. Read on to find out more!
Create or Review Your Financial Plan
Creating or reviewing your financial plan is the first step to getting your finances in order. Start by setting realistic goals and establishing a budget—this will give you an idea of what you need to do each month to reach those goals. Once you have a plan in place, make sure to stick with it so you can achieve success. Setting up automatic payments can also help keep track of where your money is going each month.
Cut Back on Microtransactions
Microtransactions can add up quickly if left unchecked—those small purchases here and there may seem insignificant, but they can add up over time. So make a conscious effort this year to cut back on those small purchases such as coffee runs or impulse buys from online stores. By doing this, you can free up some extra cash that could be put towards savings or paying off debt.
Save for the Holidays Year-Round
The holiday season is often associated with spending money—gifts, decorations, parties…the list goes on! To avoid being overwhelmed by holiday expenses come December, start saving now. Set aside a certain amount every month throughout the year so that when it comes time for gift shopping and hosting holiday parties, you won’t have to worry about where the money comes from. This way, you’ll enjoy the holidays without breaking the bank!
Build an Appropriate Emergency Fund
Life happens; things come up out of nowhere that require money—car repairs, home renovations…the list goes on! Start building an emergency fund this year to protect yourself against these unexpected expenses. Start small if need be and work your way up until you reach an amount that makes sense for your lifestyle and needs. That way, if anything comes up unexpectedly, it won’t break the bank!
The New Year is an excellent opportunity for fresh starts and new beginnings — especially regarding financing resolutions! Creating or reviewing your financial plan, cutting back on microtransactions, saving for the holidays year-round, and building an appropriate emergency fund are all excellent ways to get started in 2021. Setting these four resolutions will ensure that no matter what life throws at you this year, financially speaking —you’ll be prepared! Good luck!