With just a few more weeks left of 2019, it’s time to start thinking of your financial new year resolutions for 2020. The beginning of a new year – and this time, a new decade – always seems like the perfect time to start afresh, especially when it comes to your finances. These simple things that we share in this article will help you to get off to the new year and the new decade on the right financial foot.
Don’t Buy What You Don’t Need.
If you only take one of these tips on board, make sure it is this one. If you don’t need something, don’t buy it. You will never be financially stable if you waste your hard-earned cash on things that you do not need. This does not mean go without or settle on a cheaper or inferior option. It means thinking very carefully about every purchase you make. If necessary, walk away from it, and if you still think you need it a week later, then buy it. The chances are that if it is an unnecessary purchase, it will be forgotten about long before that. If you do need something, it makes sense to buy the very best one that you can afford – buying inferior and cheaper versions can end up costing you more in the long run.
Set a budget
This should be done on a regular basis – every time there is a significant shift in your income or expenditure. Sit down and look at all of the money that you have coming in and all of the money that you have going out, and how much is left when everything has been paid for. This gives you a better idea of how much you can afford to save, how much you can afford to invest in your retirement plan, and how much you can have fun with. Periodically check to make sure you are on the best price plans fro your utilities and insurance and that you are not wasting money on unnecessary things like unused gym memberships or subscriptions to things that you no longer use or need.
Have an emergency plan
Hopefully, you have some savings for those unexpected and usually costly emergencies. However, for some of us, who live paycheck to paycheck, it is not quite so simple because there just is not the money there to put away. In this situation, you need to have some way of getting cash quickly should you need it, whether it is a loan from a friend or family, a credit card, or you Get a loan for bad credit. However you get the money; make sure you know how you can pay it back to avoid getting into further financial difficulties.
Following on from the previous point – if you have not already got savings, start now! As we said, it is not necessarily that easy for many people, especially if they are on a low income, but if you can save even a few dollars a week or month, that is better than nothing. Transfer some of your paycheck over to your savings account on the day you get paid if you can. If your budget doesn’t allow for this, keep a jar on the side and drop any loose change it there at the end of the day. You could even try skimming – rounding your bank account down to the nearest $5 or $10 at the end of every day or week and transferring the difference to your savings. You will be surprised how quickly those few cents here and there can add up into a much more significant amount!
Invest in your retirement
If you are young, retirement can seem a long way away, but the earlier you start planning for your older years, the more money you will have to enjoy in your retirement. It is never too early to invest in your retirement, so speak to a financial advisor to find out the best options available to you.
Organize your accounts
Over the years, you have more than likely opened bank accounts here, there and everywhere, or have retirement plans and investments with companies and banks all over the place. These things can come at a price, especially if you are no longer paying in or using them, so where possible, merge them and make sure that you are getting the very best deal possible.
What are your financial resolutions for 2020?