Financial Resolutions for 2017
With the arrival of new year comes the season of resolutions, where almost everybody decides to do something productive related to various aspects of their lives like health, love, etc, but forget to work on their financial status. This year make a resolution that improves or ease your financial pressure in the long run. Some of the financial resolutions for 2017 that you can go for are:
13 Financial Resolutions
- Stop spending on bad habits: If you are habitual to eating and drinking from out all the time, you should cut back on these habits. It will not only be harmful for your health, but also at the end if you calculate your expenditure, you will realize that you actually spent a huge portion of your hard earned money on these.
- Build an emergency fund because you have no idea when and how you may need it: Emergency do not occur after giving us a notice. There can be any number of reasons(health issues, death of a family member, job loss etc) when you may need emergency fund. It is truly said hope for the best, but prepare for the worst. Following this saying, you will avoid financial issues in case of any emergencies.
- Prepare a budget and stick to it: Take some time out every month and prepare a budget for your expenses. Stick to it so as to avoid any additional expenses until and unless it is necessary.
- Compare financial products online: With technology when everything is available online, you can visit as many websites as you want and compare as many products as you want. Doing this will help you analyse each product or plan and decide which one is the best for you without going to banks and financial institutions physically. It saves your time and avoids situations where you are forced to buy a product.
- Build or improve your credit score: If you have never used a credit card or taken any loans, that means that you do not have any credit history and it may be difficult for you to get loans in case of emergency. We are not promoting taking loans or credit, but doing so will improve your credit score and in case of emergency you will easily get financial help from banks and non banking financial organizations.
You should also check your credit report regularly to make sure that everything goes well.
- Avoid sales: Sales may seem like something that saves money and tempt you in buying as many products as you can, but at the end when you analyse, you will see that most of the products that you bought were not even needed by you. This extra expenditure negates everything that you saved. So, avoid such temptations and save real money.
- Plan your retirement: Starting to plan your retirement at an early age means that you will receive higher returns at the maturity of the plan. Choosing the correct plan as per your needs, deciding whether you want a lump sum or monthly returns etc is important while you are selecting a plan.
- Invest: Other than retirement plans, invest in other plans too like PPF, stocks, mutual funds etc. Investing money in good investment schemes will ensure good returns.
- Track your expenses: Keep record of all your small or big expenditure. This record when analysed at the month end will let you know if you made any useless expenditure and avoid such mistakes in the future.
- Insure yourself: If you are already not insured, get yourself a life insurance to take care of your loved ones even after your demise. Buying a term insurance is a good option because it protects you for a specific period of time at low premiums, and these are convertible and easily renewable.
You should also have a health insurance to take care of health related expenses in case of any emergency or diseases requiring long treatments.
- Analyse and reduce debts: This year get rid of as much loan as you can. The loans or credit with high interest rates or mortgage should be paid off before the other loans, especially credit cards.
- Set short term or long term goals: Set some goals in your life and categorize them as short term or long term goals and analyse how much investment will be needed for these. After doing this, start investing for each one of them individually and see your dreams come true with time.
- Start investing for your child: This is another important thing that you must do. Investing in child plans means that you are providing your kid a life cover and also saving for their future goals of studying in the best colleges, having funds for their business or a lavish marriage etc.
If you want that you can fulfill all your needs without much financial pressure, these resolutions will see to it.