Will you frown a bit if I talk about selecting and keeping financial resolutions? Well, we have already passed the first month of this year but it’s not too late to have a good financial resolution if that helps one to secure a better financial future.
The main thing is to select an achievable one and take necessary steps to make it successful.
Here are 6 tips to decide about at least one good financial resolution and to make it successful.
1. Make a resolution that is achievable
There is no point in making a resolution which you can’t achieve. So, first of all, choose a financial resolution that will help you and which you can achieve.
For example, do not make a resolution to save an amount in a year which you don’t earn now.
Instead, make a promise to save about 20% of your salary if you can meet your daily necessities with the rest of the amount.
2. Break your financial resolution into smaller goals
It is also one way to make your resolution successful, and that is, breaking it into achievable smaller goals.
For example, if your target is to save about 2 months of your salary in a year, divide that amount by 12 and save a part of it every month
This way, you can also track how near you’re towards your financial goal.
3. Make definite resolutions that you can measure
Just making a resolution of saving more or improving your financial life won’t help you much; you need to make definite resolutions.
For example, make a resolution to pay off your entire debt or 70% of it, or decide to save around 2 months’ worth salary in your emergency fund.
It will motivate you and you can measure your success at the end of every month.
4. Select a resolution that is important to you
You will be able to keep your resolution if you have reasons behind it. It will also help you stay motivated.
For example, if you want to save for the down payment on a home but you have debts to pay off, then saving and paying off debt is the motivation to own your dream home.
5. Budget, budget, and budget!
Anyone reading my blog already knows that budgeting is the key thing. I always stress on that because I think financial planning is of no use without a realistic budget plan.
So, devote some time and plan a realistic budget which you can follow.
Along with planning a monthly budget, a weekly budget can help you quite a bit to achieve your goals.
6. Set incentives as well as consequences as per your performance
Believe me, this really helps!
Set an incentive for yourself if you reach your target and be successful in keeping your resolution. At the same time, if you fail, there should be some consequences to face.
It will motivate you to keep no stone unturned to make your financial resolution(s) successful.
A New Year’s resolution is personal. You can keep it to yourself. However, speaking about it can motivate you to achieve it. Your close ones can also encourage you by discussing how far you have achieved your dream.
If you want to keep it to yourself, just make sure you include it in your day-to-day activities to make it successful.
Remember you are your best judge. Be accountable to yourself.
At the end of the year, just look back and analyze how far you’ve achieved and whether or not that’s a significant one. That is the true measure of a successful financial resolution.
So, analyze your results and put efforts that will make you successful in justifying your financial resolution and dream.