Many of us make resolutions for the New Year – exercise more, procrastinate less, be
a better person, so on and so forth. But how many of us make financial resolutions?
And even if we do, how many of us stick to them? Sure, financial planning might not
be everyone’s cup of tea but there are numerous easy ways we can turn a new leaf
financially in 2019. This article will highlight some of them so you can bring in
the New Year on a positive note.
1. Create a budget
The first resolution for the New Year would be to create a viable & efficient
budget. Figure out what are the essential monthly expenses that need to be covered
and any unwanted costs that can be cut out. If you have any big-ticket purchases
or goals lined-up for 2019, look for ways to achieve them. Try to put a maximum
cap on monthly spending.
2. Manage your debt
Trying to streamline your debts & repayments in 2019 is important. One way to
do this is to consolidate your debt with a single loan. So if you’ve racked-up
significant credit card bills over the holiday season, have some outstanding
loans or need to pay someone back, just opt for a personal loan and cover all
of them at once. Then you’ll have one single EMI to repay in 2019 instead of
having multiple repayments to be made.
3. Improve your portfolio
Getting the most out of your investments is another very important New Year resolution.
Your financial strength is bound to have changed since the time you set up your
investments. You can alter your fund allocations to fetch returns that are aligned
with your current financial position. If you do not have any investment, 2019
could be the perfect time to start building your portfolio.
4. Emergency fund
If you haven’t already created an emergency fund, this is the first thing you should
do in 2019. An emergency fund is a pool of funds that easily accessible and at
hand to help you out of a financial emergency. Try and save at least 6 month’s
salary and keep it aside for a rainy day. You can invest these funds to earn
returns, but make sure the investment can easily be liquidized.
5. Reassess your insurance needs
Life insurance, car insurance, health insurance, etc. – they are all very important
financial safety nets. Having the right policies in place ensure you can bounce
back financially from life’s unexpected twists & turns. However, most of us buy
policies and just pay the premium without ever reviewing our needs. This could
lead to being underinsured or over insured, both of which will cost you money.
So go make it a resolution to go over your insurance needs and alter your plans
accordingly.
These were some of the easy financial resolutions you could use to ensure financial fitness in 2019. We hope this article
has been helpful. Good luck, all the best and a happy New Year!