How to keep your financial resolutions for 2017

How to keep your financial resolutions for 2017

Jan 1, 2017

Article Written by : Business and Finance Net

Many will make new years resolutions and then forget them by the end of January. However, a new years financial resolution could mean that you are free of debt and have savings that will improve your financial health.

Resolution No. 1: Setting a monthly budget – Budgeting is a good way to build long-term wealth, but getting started can be a difficult process. Here are a few tips:

Know how much you make – You should take your final figure after all deductions have been made.

Calculate how much you spend – Use a spend tracking app or use an excel sheet and this will help you log every dollar spent over a 3 month period.

Know where you can cut back- Fixed expenses like rent or your mortgages are areas that will remain the same. But you can look at other areas like grocery bills, dining out, shopping, utilities, subscriptions etc.

Adjust your numbers – Every month will be different and you will have to adjust your figures to stay focused on your goals.

Resolution No. 2: Building emergency savings – Your emergency fund will see you through if you loose your job. Ideally, this fund should cover your expenses for at least 3-6 months. Here are a few tips:

Monthly savings goal – Take a percentage of your income and ask your bank to directly transfer this amount to another account each month.

Save windfalls – If you get any extra money in the form of gifts, bonuses or rebates directly transfer this to your emergency account.

Earn more. – Look for ways to make extra money, like engaging in freelance work or getting a second job.