Personal Finance Resolution

What is your financial resolution this year? If you have none, then it is high time to take a fresh look at your current financial status and consider some immediate resolutions. The year is not old yet and you can always give a fresh twist to the way you manage your finance. Identify the old habits you need to get rid of immediately and make sure to manage your finance in a better way.

Be logical while planning your resolutions. Make a plan that is more likely to be attainable.

Say no to impulsive purchase: Many people visit a grocery or other stores to buy a certain thing but end up shopping multiple things most of which they might not require, at least that time. This is a problem with many of us who can’t control their spending habit. They always have their trolley full while shopping when they need only one or two items by that time. This is what we call impulsive buying.

Being a slave to this habit, many of us have our pocket emptied even when it is only mid of the month. Be firm in your decision to say ‘no’ to impulsive shopping. There are simple ways through which you can develop a good spending habit. Always make a plan before shopping. It’s better not to carry debit or credit card while shopping; otherwise you might feel tempted to buy an assortment of things instead of one or two. There are lots of things in a store to invite your attention, spend little time on shopping so that you won’t get to see all of them. Before buying, always make sure that the particular item has utility for you.

Swear by your budget: I hope that you have a monthly budget plan to record the details of your financial transaction. Budget helps you monitor incoming and outgoing of your liquid asset. From it, you will recognize the sectors where spending is unnecessary. Exclude those items. It might not be possible to stop spending on them at a time, but cut down a larger chunk and slowly reduce the expenses to zero level. Always stick to your budget as it is a guideline for you how to manage your money asset more sensibly.

Abstain from unhealthy habits: They refer to smoking, drinking and other practices that not only harm your health but also hamper your financial condition. By staying away from these injurious habits, you can keep yourself in good health and also prevent your hard-earned money from getting drained out. It might be difficult to keep up your resolution of quitting those habits but if you succeed, result will be good for your health and wealth as well.

Save for your emergency needs: None of us can predict arrival of emergency problems like job cut, health hazards etc. Always be prepared for such situations that need a bagful of cash. Save for your emergency fund to avoid taking help in form of loans.

Get enough term insurance: A term insurance is the least expensive insurance type. It extends supports to your family even when you will be more to care for them.

If you stick by those resolutions with disciplined regularity, you might start the next year with a much better financial health.