5 Financial New Year's Resolutions to Make Right Now

by Sakshi Mehrotra

Taking resolutions for self-improvement is the best way to enter into a new year. The year 2020 has been full of surprises, and the Covid induced lockdowns have compelled people to think about the finances. Financial planning is essential if you wish to live a life of financial stability and freedom. The best way to achieve anything is to set a clear goal and design a plan of action to achieve it. Money management is similar, and you must set financial goals for yourself and devise a plan to achieve them.

Let us look at some new year resolutions that you can take to get started on your financial freedom journey.

  1. Read Books on Personal Finance - Learning about personal finance is the best thing you can do for your financial health. Money-saving is a habit that should be taught as early as possible. Reading about the subject will give you new ideas and the much-needed motivation to implement them. Make a resolution to read at least four books on personal finance during the year. If you are not a big fan of reading books, try doing an online course on personal finance.
  2. Maintain and Stick to a Budget - Take a resolution to create and stick to a budget next year. Review your past spending habits and understand areas where you have been overspending. Divide your expenses into categories and allocate the amount of money you want to spend in each of the categories. Make sure to include the amount of money you wish to save each month in your budget too.
  3. Track Your Expenses - You cannot manage what you cannot measure. Keeping track of your expenses is the first step towards getting in control of your money. Take a resolution to regularly update your expenses in an expense tracking app that will let you review your monthly payments in a single click.
  4. Save 10% Each Month - Paying yourself first is the most significant rule of wealth creation. If you are not saving a part of what you earn each month regularly, you will not grow financially. Take a resolution to save at least 10% of your income each month as soon as your salary arrives. You can automate the process by signing up for a recurring deposit or a mutual fund SIP to make sure you are regular with it. There is no right age to start retirement planning, and you should do it as soon as you start earning.
  5. Limit Your Credit Usage - If you have unhealthy credit card habits, you should make it a point to put them in check as soon as possible. Pay your bills on time and avoid paying high-interest fees at all costs. Ensure you do not use more than 30% of your credit limit, as it reflects poorly on your credit score. Take a resolution to be more responsible with your credit card and only use it when needed.

Don’t forget to budget and manage your expenses in the new year. Use the Wizely app to budget & save as less as Rs. 100/- today.