New years come with new aspirations, motives, and objectives to start afresh. New year resolutions aren’t new anymore, however, are equally crucial to willingly start working towards a goal with a fresh perspective.
Goals can be financial, personal, professional, fundamental, etc. An individual can have travel goals, goals related to personal growth and development.
Well, narrowing it down to working towards setting up financial goals, it is important to set realistic goals that are achievable. You might have heard people falling out of their resolutions, or are on the verge of discontinuing them as unrealistic goals might give you a thousand reasons to leave them.
Let’s see what our gentleman, Pi, has to say about his New Year resolutions?
Meet — Pi. Pi is smart. Pi is always curious about being smart with his own money. We reached out to him to know what are his New Year resolutions this year. Guess what? We have the list.
Here are 5 realistic and attainable financial goals to look forward to this New Year 2022 -
- Create/Revamp your monthly Budget
- Pay Yourself First
- Create an Emergency Fund
- Assess your Eating-Out Budget
- Pay-Off Your Debts, Timely.
Create/Revamp Your Monthly Budget
Budgeting is the ultimate way of tracking your expenses when you’re unintentionally splurging your hard-earned money.
Budgeting can help you in numerous ways to stay on top of your financial well-being. With the help of an achievable budget, you know where your money is going.
Pay Yourself First
“Pay Yourself First” is a very popular phrase amongst the investors’ community which literally means paying a considerable amount of money from your paycheck to yourself, every month.
It is believed to contribute some amount of money towards your retirement fund or long-term investment plan where the corpus accumulated over a period of time can give you long-term benefits.
Create an Emergency Fund
What do you think is an Emergency Fund? An emergency fund is the stash of money kept aside to meet the unanticipated expenses. We have said it earlier, in case of financial emergencies, as “One can never be mentally prepared, one should always be financially prepared”.
The sole purpose of Emergency Funds is to provide financial assistance during an expected emergency call.
If you still haven’t created an Emergency Fund, make a resolution to create one this New Year!
Assess your Eating-Out Budget
If you think “eating out” is not under your control, trust us, it is! Re-evaluate the amount you spend to order food or at fancy restaurants.
If someone asks you to stop spending money on food entirely, don’t listen to them! We would suggest you optimize the amount spent on food every month. Without setting aside a budget for fancy expenses like food, clothes, etc., you wouldn’t even realize ending up spending more than you are required to.
Pay-Off Your Debts, Timely
If you cannot nullify your debts entirely, try minimizing them. Paying off debts as soon as you can, is considered a good habit in Personal Finance.
Set aside an amount every month to contribute and pay off your debts. To enjoy your financial freedom, all you have to do is have control over how much you owe towards your debts.
GETO TIP: Start investing in your future self, if not anything else. It is never too early or late to start investing in smaller amounts, if not in a lump sum.
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