The beginning of a New Year presents us with the opportunity to reflect and make positive changes desired to succeed. Finances play an important part of these plans. Be it increasing savings, choosing the right place to invest or even a change of career, there are certain things you can do to avoid mistakes that will stand in the way of making your 2020 a good financial year.
Set financial goals
In order to succeed, you need to first set clear and realistic goals, especially when it comes to your finances. Give yourself a thorough financial health check, and diagnose your strengths and weaknesses. If you are not confident in doing it yourself, find a professional who can help you. Learning from past mistakes can help you know what went wrong and how you can make this better. Your goals must be achievable, measurable and time bound. It is a good idea to put this in writing and keep it at a place where you would be likely to see it every time. On a day when you think you are losing focus; reading them would serve as a handy reminder.
Avoid credit as much as possible, embrace debit
The purpose of having a budget is to know how much you intend to spend versus how much you have and expect in revenue. Set a personal budget by reviewing for example, your monthly expenses against expected income. If there are alternatives in terms of products and services which would produce the same value in terms of results, you may consider subscribing to them as a less expensive option. Be in control of all your credit cards and loans; make payments on time, and most importantly adopt the strategy of living on debit.
Review all details of your investment plan
Good investments yield good results. Before you invest, examine the viability of the project in the long term if for example you are investing in property. When investing with financial institutions, it is important to check the credibility of the organisation and review every intricate detail of the commitment. The expected return must also be worth the investment.
Multiple streams of income
Having multiple streams of income will help you reach financial stability faster than depending on one. Many have succeeded using this method and have managed to pay off debts quicker as well.
Yes, save more securely as a rule. Set aside an amount to save periodically, and add it to your budget. Make plans to add on to the amount as time goes on, and keep your savings at a place where your money can work for you so that you can still benefit from interest.
Avoid spending from Emergency funds
Emergency funds are simply for emergencies! No matter how tempting, avoid dipping your hands to spend from this kitty unless it is a real emergency. If you haven’t already set up one, it is a good time to do so.
Successful people know that the more you give, the more you get. Don’t be selfish; invest in other people’s lives as well. You are only paying forward and you will enjoy the rewards in both short and long terms.
You become who you associate with
Associate with people who are making strides in personal financial planning. You become who you associate with, so your circle must include people who you can discuss your finances with and expect valuable advice from.
By: Theresa R. Fianko