Many of us have already made resolutions for the new year, with February already underway. Getting in shape or reconnecting with an old friend are two common goals. Another popular resolution is to improve one’s financial situation. However, keeping these resolutions is often more difficult than anticipated. Because your financial well-being is so important, you should make sure to set goals that you won’t forget about in a matter of days or weeks. To help you avoid falling into this trap, I’ve put together a list of quick financial resolutions that you can stick to throughout the year.
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1. Create a budget, even if you find it difficult to stick to it
If you’ve ever worked in sales, you know how important it is to set goals and have a game plan. A budget, on the other hand, serves as your financial playbook. It advises you on how much money you should spend in each category. A budget is important because it provides you with a broad overview of your requirements. It’s important to remember when creating a budget that it can be anything you want. You could, for example, set goals for the bare minimum of expenses or devise a strategy that allows you to eat out once a week. In any case, the most important thing here is the actual act of budgeting. Far too many people in the United States are financially illiterate. Even if you don’t stick to it, creating a budget will help you gain a better understanding of how your finances work.
2. Keep the coffee, but reduce the amount
Many financial health articles recommend eliminating coffee from your daily routine, but thinking about how you spend money on coffee is a better option. Cutting down on your Starbucks purchases is a good start, but it doesn’t mean you have to give up your favorite cup of java. Buying pre-brewed coffee or brewing coffee at home can help you save a lot of money. Of course, coffee isn’t the main concern; the main goal is to cut down on unnecessary spending. Everything adds up, whether it’s buying a soda at the gas station or a candy bar at the checkout. These habits are difficult to break, but if you can find a different way to satisfy your hunger, you’ll save money as well. To better understand how you’re spending money and how much you’re earning, think like an accountant and use a profit and loss statement template.
3. Assess your financial situation
Why shouldn’t you evaluate your financial security like the rest of the successful people do? You can keep your resolution to evaluate your financial security by doing so. This entails assessing the stability of your income as well as the likelihood of your expenses remaining constant or changing. Examining trends is another important part of gaining a better understanding of your financial situation. Have your expenses, for example, been increasing? Are you racking up debt on your credit card? All of these things could indicate that you’re overspending. Finally, take a look at your bank account. I previously discussed the importance of developing a savings strategy. If you don’t have one or are only contributing a small amount to your savings account, this could indicate a lack of financial security. In either case, determining your financial security can be a straightforward and effective solution.
4. Make a financial plan
It’s time to start protecting your savings if you’re already financially secure. Many people consider life insurance to be one of the most effective ways to safeguard their financial future. Creating a savings plan works in a similar way to making a budget. Even if you are unable to commit to saving money, putting together a savings plan can help you get started. One of the most common financial resolutions is to save. However, creating a savings plan in the first place is an easier resolution to keep.
5. Get a part-time job
Finding a side gig can be a great way to supplement your income and that of your family. A side gig can be anything, but many jobs in the service industry are currently hiring. Picking up a few part-time shifts during the week can be a great way to supplement your income. Finding a new source of income has the primary advantage of providing a clear goal. Because financial goals aren’t always concrete, they can be difficult to stick to.
6. Consult a financial advisor to make a plan for your financial future
Scheduling a meeting with a financial professional is another simple goal you can set. Meeting with an expert, whether a certified public accountant (CPA) or a licensed tax professional, is a simple first step toward a secure financial future. A tax professional can also assist you in identifying deductions that will allow you to save money on your taxes this year. Because their entire job is dedicated to financial well-being, these professionals are an invaluable source of information. This is the most straightforward and attainable goal on the list.
7. Persist in your efforts and don’t give up
The final and most important goal to remember is to persevere in your endeavors. Persistence is one of the most important factors in achieving success, and it is the primary reason for other people’s financial stability. Actor Robert Downey Jr., for example, was deeply troubled and had little to no money prior to his film success. Failure is sometimes the first step on the path to success. You can continue to improve your financial literacy by sticking to your financial goals. These objectives will become beneficial habits that you will follow every day over time.
Bringing your financial resolutions to a close
The majority of these resolutions center on making and sticking to specific financial plans for yourself. Building these plans and then sticking to them are two of the most straightforward and effective ways to improve your financial health this year.
Learn more from finance and read Wasting Money in Your Business? Here’s How to Stop.
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