4 Easy Steps to Stick to Your Financial Resolutions
How’s your January coming along? If you’re like most people, you’re probably trying your best to stick to your financial resolutions. Many at this point in time are already discouraged to push through with their resolutions, especially when it comes to financial management.
Though managing your financial wealth might seem challenging at first, you can avoid financial troubles along the way with the right attitude and habits. If you want to know how to stick to your financial resolutions, take a look at the some of the pointers below:
Review Your Spending Habits
Have a look at your spending habits. Are you using your money more on wants rather than needs? Know the difference between luxuries and necessities, and apply them to your next budget planning. By reviewing your spending habits from last year, you’ll know how much money you could have saved or invested.
Create a Plan B
A contingency plan is absolutely necessary, especially if you’re aiming to be financially independent. It will make you feel less exposed during times of financial difficulty, as well as helping to avoid derailing your strategy. Do you have insurance coverage? What happens then if suddenly you’re not able to work because of injury or illness?
Be Wise when Using Credit Cards
Credit is not necessarily bad, depending on how it is used and managed. Taking advantage of interest-free periods can be a great way to manage your daily spending, as well as some larger purchases such as holidays and furniture. For example, your credit card provider may offer 55 days interest-free on purchases, meaning you can use your credit card for everyday spending (not cash advances) with no interest charged. At the end of the month simply transfer the funds owing from your everyday savings account.
Many furniture stores now offer 1-5 years interest free on larger purchases, meaning you can slowly pay off the item over the term, with no extra interest charged – but always read the fine print first to check for any other fees you may be liable for!
To curb spending with your credit card, set some rules for yourself. For example, for small purchases like groceries, use cash instead of credit. You’ll avoid needless debts, and it will help you stick to your budget.
Invest in Yourself
Now this may sound like spending, but when you spend to improve yourself, you’re actually investing in your future self. By increasing your qualifications, you may be eligible for a pay rise or promotion with your employer, or be able to apply for an entirely new job you didn’t qualify for before. If done right, the money you spend on your education should pay for itself – and in some cases it’s also tax deductible!
No matter how old you are, you can still learn new things and develop new habits. Be open to possibilities and don’t limit yourself to what you can do now.
Make 2016 a year of financial independence. If you want to be financially successful, you have to take every necessary step. Contact us today to know more about effective wealth management strategies.
Do you know other ways to stick to your financial resolutions? Share your thoughts in the comments section below!