From losing weight, to quitting smoking or getting active, New Year’s resolutions come in all shapes and sizes. One important New Year’s resolution to make is a financial New Year’s resolution. Making a New Year’s resolution is a great way to make a meaningful change in your life for the better – especially if you can stick to it. Having a financial New Year’s resolution can help you control your finances and get money in your pocket. This is especially great for those who have big events coming up in the New Year such as a wedding, buying a new home or travelling overseas.
So what types of financial New Year’s resolutions are there? The Huffington Post have listed some of the most common financial goals that can be ripe for making a good New Year’s resolution including; I want to reduce my monthly spending, I want to pay off my debt, I want to build an emergency fund, I want to save for a down payment on a house and I want to have enough money for retirement. These can easily turn into measurable resolutions and goals including; I will spend less than $2,000 each month, I will pay off $350 of my debt every month, I will save $500 for my down payment every month and I will put away $100 for my retirement every month. These are all a great start towards your New Year’s resolution. Whatever you decide to do, make sure it’s achievable and realistic. Another good idea is talking to us at Fortis Accounting Partners so we can help guide you in the right direction.
So once you have selected your financial New Year’s resolution, you need to work out a strategy that will help you keep to it. According to Forbes, the first thing to do is choose one resolution not many. Choose your best financial New Year’s resolution and focus your attention on trying to achieve that one goal. If you choose too many resolutions it can be hard to remember them and stick to them. The next tip is to put your goal in writing, by writing your goal down and engaging with it on a regular basis, this will help you stick to your goal. Next you should set action commitments; this includes breaking your goal down into smaller steps and holding yourself accountable for each step.
For example, if you want to save $2,000 each month this will mean saving $500 each week, you should then write down the ways that will help you save money including; cut down grocery budget from $150 to $100, cancel gym membership, only allow $100 each week for entertainment expenses etc. This will help you set smaller manageable tasks that will help you stick to the resolution. Another way to help you stick to your resolution is by telling a friend. When you tell someone it becomes more real and they can help support you along the way and pull you in line. This will force you to come clean when you haven’t been sticking to your resolution and they can be there to support and assist you with your goal.
Finally, you should always reward yourself. There’s no point making goals if you don’t reward yourself for your achievements and accomplishments along the way. Every time you accomplish an action set you should give yourself a little reward, even something as little as buying a coffee when you said you were only going to make them at work and home. This will help you stay motivated and helps you realise this isn’t all for nothing.
Establishing a New Year’s resolution is a great way to help you save money and establish your financial future. If you require any additional finance assistance, or would simply like to have a chat with a knowledgeable accountant or financial planner – please don’t hesitate to get in touch with the team here at Fortis Accounting Partners/Fortis Financial Planning. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
