9 Financial New Year's Resolutions

Here are 9 simple and easy time-tested and proven things you can do this New Year to have a sound financial foundation. This year is going to be a splendid financial year for everyone around the world. But to make that happen for yourself you will need to have some money, a target, a plan, some discipline and lots of learning and exploring the financial world.

1. At the beginning of the month set aside money for your EMIs, utility bills, Credit cards bills etc and then start spending

Most of us feel that we are always careful while spending and it is just the rising cost of our necessities that we end up saving nothing. But it’s a wrong logic. It's proven (I can vouch for this) that once we keep funds aside for our monthly bills and fees and then make up our mind to manage our expenses within a well chalked-out budget, we surely spend less than we used to without planning. After a month or two into this routine it sort of becomes a self-challenge to manage within budgets and save more and more ( read : 16 Ways to Save Money on Groceries).

2. Make a weekly budget if your monthly budget is not working and stick to your budget come what may!

There are weeks in a month when we find ourselves sticking to the target well and indulge in pampering ourselves while still restricting to the budget. And that’s exactly when the budget plan goes down the drain! If you come across yourself getting into this indulgence, try and adopt a weekly budget at least until you are a pro in managing your finances and have saved up a little more than you targeted to.

3. At the end of the month make a note of extra and unnecessary expenses

Not all plans go as expected. And managing financials is never a child’s play. You might have an emergency or a party to attend or a wedding to go to or a visit to your home or simply have visitors/ guests. All these take a toll on your budget. Never mind with the expenses because one can never rule out exigencies. In such a case, it is advisable to calculate how much these out-of-the-normal events cost you so that in the future you can always have a back-up kitty for such unavoidable and unforeseen events.

4. Don’t let your saved money hang around in cash... put them in your account even if not investing them.

This is a very important aspect of handling your cash. Never let the saved and unspent money lay around in your wallet or drawers; you are bound to spend it off in a jiffy. Rather, at the end of the month put it in your bank account. You may opt for a separate account/ e-wallet to keep accumulating your savings from monthly budgets and keep them as you back-up kitty as I said in the previous point.

5. Start a mutual fund SIP by diverting your savings/ part of your income there

While the previous point is the beginning of digitalizing your saved money, we are now heading to investing the saved money in a mutual fund scheme as a SYSTEMATIC INVESTMENT PLAN. This not only helps you stay motivated with saving but also earns you interest of around 9% (although it is not a fixed rate and is subject to market risk). So, with this you are not just saving but also investing. Mutual Funds SIPs are the easiest, simplest and most transparent and rewarding form of financial investment. [For more understanding read articles on mutual funds on our blog].

6. Save by choosing the right insurance

As many of us are unequipped with making financial decisions for ourselves we tend to go by the advise and suggestions of the insurance companies. Although we can trust them to a certain level, it is we who must know how much we can afford on insuring ourselves and our belongings. Read and make yourself aware of the insurance kinds and options in the market and the claim procedure before deep diving. For auto insurance you can read : How to Shop for the cheapest yet best car insurance?

7. Lessen the number of prepaid cards and credit cards so that you save on the minimum maintenance charges that come with expense tracker.

In today’s world of digital banking and transactions we are lured into having a dozen accounts; some out of need and some out of fancy and curiosity. Although we must try out new mediums and applications, we must also ensure that our fancy and curiosity is not costing us. Opt for accounts that can be used for multiple utilities, opt for those with lower maintenance and transaction charges, opt for those that help you tracking your income and expenses and keep looking for rewarding and safer avenues to hold and access your money. Read more : Understanding Credit Card Billing Cycle and Grace Period

8. Sign up for classes to enhance your skills to have a growth in income

Once we step into work life we barely have the energy, time and resources to engage in enhancing our skills. Skills can be either the ones that might help you grow professionally or the ones that you have honed as a passion or hobby. Neither is worth less. You may learn/ improve your skills and out them to use by conducting workshops or classes or tutorials. Won’t these fetch you some pocket money?

9. Reassess your existing investments and Start planning for your short term and long term investments. It's better late than never!!

If you are a beginner don’t delay in planning your investments for the future because understanding and deciding how to invest your money is not going to happen in a night. It'll need a lot of learning and exploring. Or, if you have made some investments earlier on, revisit them, assess if they are performing as expected and look for better avenues to grow your money and make an investment plan for your new year!

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