Money can be quite fickle – here today and gone tomorrow. Thus, unless you make concise and constructive plans, you would be shocked to realize you are broke despite how much you earn.
Now, the year is practically over, which is why it is wise to step into 2018 with effective money resolutions so you do not wind up where you started in 2017.
These new year money resolutions can also affect other aspects of your life by making you be more committed to following through with your decisions.
1. Have specific projects
Financial experts say that making a list of specific things you want to do can be very helpful. Avoiding vague descriptions, like ‘save more,’ will give you something definite to work towards.
Also, to avoid over-burdening yourself, it is best you stick to just three projects that you are sure you can accomplish. For instance, the goals, such as ‘buying a better laptop,’ ‘buying a car,’ or ‘investing in…’ etc. This way, at the end of 2018, you will definitely complete tangible projects.
2. Create emergency funds
No, this does not refer to your savings. Make it a point of duty in 2018 to have an emergency stash for contingencies that will be accessible for only dire situations. This is an effective way to save because during emergencies.
You will not have to ‘steal’ from your savings (which ideally should be a certain percentage of all you earn monthly set aside unfailingly) to solve the problem. In order to make this easier, ensure your savings are not easily accessible.
3. Spend on what moves you forward only
The only way you can achieve this 2018 money resolution is by assessing your current expenditure. There is no going forward without knowing where you are coming from, right?
Good. Then, you have to examine your spending patterns from 2017 and know the habits or items you should discard and those you should commit some more to.
4. Have a no-spend day
Respected financial advisor, Michelle Waymire advises that having a day set apart in the week as a no-spend day is a great resolution to hold on to in 2018.
This resolution can work for young people who tend to hang out with friends a lot and spend quite an amount of money. And who knows, one day, you may end up having two no-spend days! Any more might be too much though, you still need to live.
5. Pay it off first
In 2018, adopt a policy of paying off your debts first – whether it is what you owe people, the bank or your credits. Try to never get into debts but if you do, clear that first before you spend on anything else.
In fact, aim to adopt the philosophy of quickly paying before indulging in luxuries. That way, you will have no debts consistently hanging over your head.
Many people make resolutions at the end of every year but to no effect. So, unless you are dedicated to seeing these resolutions through, you could end up broke in 2018.