We all know that New Year Resolutions are easy to list, but hard to keep. And resolutions about money are even harder. Here are some tips to help you keep at your resolutions.
Go low on the interest you pay: This one is a big consumer of your hard earned money. Make a goal to go down on the interest you pay annually. For example; pick the credit card on which you pay the highest interest and aim to pay it down by 50% if not higher. Mahesh and his wife total all the interest they paid in the current year including interest on EMI’s that go for the home and car and make a resolution to pay that down by 25% in the new year. This would mean that they would go about making payments on principal in order to lower the interest pay out.
Keep money resolutions simple and achievable: When it comes reducing debt on your credit card, it does not mean that you add new debt through another personal loan. Keep it simple and realistic. Add up the total debt and look to reduce that by 25% by the end of 2017. Work the numbers. It is the only way to reach your money goal for the year.
Get your Family involved: Let the family know that you are working on giving them a safe and financially secure future and their small sacrifices on gadget upgrade, shopping, holidays and throwing parties are appreciated, welcome and does make a difference. Like Harish the 40 year old Marketing Manager, who involves his wife when he writes down his money goals for the year; over the last 3 years he has brought down his debt significantly and he says he owes a lot of this achievement to his wife.
Know where you stand with CIBIL: Check your credit score. Not just a numerical summary of your credit history; it is the only proof of your credit worthiness. And it goes a long way in determining your eligibility for future loans.
Work on financial issues that are stressing you the most: Sangeetha is an independent PR professional who lives on her own in a rented flat at Madivala. Although she manages her finances well, she was completely stressed out about her spending over the last 9 months. She wasn’t able to see her earnings in her bank balance while her credit card has also been reaching dangerously close to the maximum credit limit every month. She ate out most of the time as she had no time to cook and she took the taxi to avoid driving. This corroded her income every month. For 2017, she decided to hire a cook as she realized this will help her cut down expenses by 40%
Remove the emotion from Investing: This can done only when you make saving and investment automatic so that you don’t feel guilty about not saving every month or investing when the time is right. Talk to a Certified Financial Planner today to make these important moves and the rest will be sorted.
Reward yourself when you achieve a goal: If you’ve met your monthly or half – yearly goal then do the thing that would feel like a reward in order to get yourself going. Achieving money goals and keeping at money resolutions involve meeting challenges daily. Lifestyle changes and making the family understand the need to make those changes are tough things and it’s important that you reward yourself and your family when you have stuck to a New Year money resolution.
So make that list and check it twice. Then start making those first few changes and the rest will fall in place. Wishing you all a Happy and Prosperous 2017!