Top Financial Resolutions That Will Make You Financially Fit

2018 is here. It’s a perfect opportunity for us to start afresh. Wipe the slate clean, and make new resolutions that will help us to have a better life. As money is always a concern for most of us, we have a list of top financial resolutions that can help to become financially fit. Follow them to trim your expenditures and give a boost to your savings. Here’s the list:

Save first, spend later

It’s the oldest trick in the book. And it’s the most effective. What I like most about it – once you start following this ‘save first, spend later’ resolution, it becomes a habit. You start thinking from the perspective of saving money in every scenario. Money wisdom seeps into your bones. If you’ve not tried it yet, bring this habit to your life in 2018. Save first. Set automatic deduction from your account on the day you get your salary. If you choose to invest in SIP, Mutual fund or RD – even better.

Keep records

Do you know exactly how much you spend on groceries? We all can give a rough estimate of our grocery bill. But only a handful can tell the exact figure. But grocery is not the only area of concern while trying to manage money better. There are many areas where we fumble – eating out, impulsive shopping, online shopping, and entertainment. The point is to know where we spend more than required and try to find a way to fix it. To identify those areas, we must keep records. Do it for a month and at the end of the month, brainstorm with your family about how you can reduce or eliminate those extra expenditures. We suggest you use Money View app to record and analyze your spending and saving behavior.

Pay all the bills in full before the due date

I strongly believe in paying all the bills on time. I do it because it gives me peace of mind. Till we pay our bills, a lingering thought at the back of our mind bothers us. So why do that? Set reminders on the app to get rid of worries and penalties. Authorize auto-deduct from the bank account for electricity, internet, phone, water bill.

Resolve to pay off your debt

Debt is the main reason for financial instability. Live within your means. And resolve to pay off your debt. Evaluate your debt and make a yearly plan to pay it off. Set a monthly payout from your salary. In case you save extra money, pay off the loan first. Getting rid of debt is the first and foremost step towards attaining financial fitness. By all means, try to be debt-free.

No more EMIs

In addition to paying off your debt, there are two more steps to ensure we are totally debt-free.

• Don’t take products on EMIs
  
• Never max out your credit card
  

EMIs always have some cost attached to it. Plus, buying on EMIs means we are spending beyond our means and buying things we can’t afford. Put a stop to it in 2018. Say no to EMIs and don’t max out your credit cards.

Break one habit that forces you to overspend

I used to spend a lot of money on coffee. I broke this habit when I perfected the recipe for coffee at home. And I realized I saved hundreds every month. Find one habit of yours that propels you to overspend. Then break that habit. Spend too much money on coffee – buy a machine and make it at home. Impulsive shopper – unsubscribe from brand emails. Fast food junkie – start a fitness program and cook at home. This one change will be a big leap towards the financial fitness goal.

Say no to temptation and yes to saving regularly

It’s difficult to sideline our temptations. If we have money in our wallets, we will spend. The best way to keep our temptations in limit is by counteracting it with a bigger and better temptation.  Say you fancy a car, resolve to save for the down payment by year end, this way you won’t find it difficult to resist shopping when you are going to the mall with your friends. Also, it’s prudent to save regularly. Save every month. And try to save at least 20% of your monthly income. This would bring you closer to your financial goals.

Be serious about investing regularly

Make investment your priority. You should draw up a plan to invest regularly for retirement and major goals in life like child’s education, house, or wedding. Do your research and invest in mutual funds and equity based on the risk you wish to take. Remember the sooner you start investing (no matter how small the money), higher returns you will get at the end of investing period. The premium on policies is low when you start early. Take steps to secure your future as soon as you get your first paycheck.

These resolutions can bring you closer to your financial goals. Try to imbibe them in your routine to become financially fit. Are there other resolutions you follow to keep your finances in check? Please share it with us in comments below.