The Best Financial New Year’s Resolutions
A new year is not just another year; it is rather 12 new chapters and 365 fresh chances. But what the new year brings to you depends a great deal on what you bring to the new year. It could be bad debts and old money habits or new hopes and judicious money resolutions. In any case, now is your chance to get a fresh crack at your financial situation.
The year 2020 had been particularly a challenging year for most with the pandemic hitting every financial situation badly. And there’s probably a good chance that you were unable to meet many or perhaps all of your top financial goals as a result.
With the new year around, it is only fair to kindle new hopes of a year that is going to be different. A year to pay down your credit card debts and a new beginning to stick to your budgets and put more money toward retirement.
It is more significant than ever to give up bad financial habits and reset your personal budget to align with your future financial goals. Especially, if your finances have got into a bit of a tangle, why not make 2021 the year to untwine and conquer.
List of Best Financial Resolutions
Here are the best financial new year resolutions 2021 that we have put together for you to stay on top of your money goals!
Draft a Personal Budget
All good things in life come with a little patience and a lot of planning and financial freedom is no different. While a personal budget might feel constricting, the truth is keep a check on your spending helps you understand where you money is going every month. A clear budget can give you a better idea of what you can afford and where you can cut back.
Here is a list of best budgeting apps that might be helpful for you.
Start by using a smart tool like the Doctor Money app to track all your fixed expenses, like rent or mortgage, groceries, and savings. Once you have a clear personal budget in front of you, you can plan to reduce your food bill, cut your car costs, or save money on energy. Setting up a budget for a new year should be chance to try harder and do better in terms of your money habits.
Pay Off 20% of Your Debt
Looking for being more specific and thorough in your money resolutions? Take a pledge to pay off at least 20% of your all debt this year. But remember this is easier said than done unless you have planned keenly.
So if you have racked up a lot of debt on your credit card, consolidate your debts on a single card and one with a lower interest rate than what you are currently paying.
Similarly if you are not making any progress in paying off your home loan, consider refinancing your mortgage. Needless to say, set out clear plans to pay off 20% of your total debt as soon as possible. Take it little by little instead of going for the entire dollar amount all at once.
Max Out Your Retirement Savings
You might hardly find anyone in the world who would want to work forever. But the longer you put off savings for retirement, the longer you will have to work in your life. Even worse in a job that gives you no joy and a lot of stress.
The easiest way to kick-start your savings for your retirement is by signing up for your employer’s retirement plan. If your employer offers a match, make it a point to contribute the minimum requirement to get the most company match. If you are already saving for your retirement, resolve to contribute the maximum to your retirement savings this year.
Get the Bills Out of the Way on Time
One of the biggest setbacks to our financial situation are the late payments on bills. Paying bills on time not only improve your credit score, but it also saves you money over the long haul. Most late payments on bills usually add anywhere from 10% to 15% to the total monthly payment. And that’s a lot of money going to waste even if you are late with only a few sporadic bills. So with bill payments on time, make 2021 the year where you get better organized and more responsible financially.
Find Multiple Income Streams
While saving and cutting back can be great money resolutions for a new year, they might not be the only options to get a better grip on your financial situation. In fact, you can do even better by boosting your income.
If there’s anything that a world impacted by a pandemic has taught us, it is that life is unpredictable and finding multiple income streams is indispensable. Most of us have come to realize that self-employment is proving to be much more promising than traditional employment with its ability to offer income diversification.
Therefore, there a variety of ways to give a boost to your monthly income, be it from freelance work or from any less technical side gigs like babysitting. You can even go a step further by investing in rental properties if you have some extra amount to invest. The key is to find what works best for you and your situation.
Whether the dawn of a new year is making you have a calling to save more, spend less or anything in between, it all starts with setting some reasonable money resolutions today. And the key to sticking to these resolutions is to make them actionable and measurable.
If putting together your personal budget on your own is being more than you can handle, why not give Doctor Money a try? The Doctor Money app helps you create a feasible budget by keeping your spending and expenses in check. Download the app today and end the coming year in a better place than you started it.