Creating a resolution list has been a long-standing tradition and is one that has proven to be successful for many people over time. So why not keep with good tradition and press the reset button on all of your financial missteps and learning opportunities of 2015.
Here are a few financial tips that you can choose to add to your New Year resolution list that can help you to put yourself into a more financially fit position, and get a jump-start on the year!
Reducing debt is an obvious way to increase financial stability, peace of mind and overall health. Since we’re coming out of a holiday season that no doubt put pressure on our wallets, this is the best time of the year to take stock on your spending and create successful and fun ways to get that spending under control. Organize a list of your expenses; especially those you incurred over the holidays and create a working budget in order create a strategy for paying bills and lowering expenses. If you’ve incurred larger balances on your credit cards due to holiday spending, then try to increase the minimum monthly payments on those expenses so that you can get out of debt faster, and not waist your money on unnecessary interest charges
2. Spend less and Save More
Now that you’re on a roll by creating a working budget for yourself, try going a little further by assessing where you can reduce unnecessary expenses.
Perhaps there are some bills that can be reduced, such as cable or electric bills. Consider if you need all those extra channels that you don’t watch, or consider turning off appliances that you’re not using to save on your energy and electric bills. Unplug outlets when you’re not using a particular appliance. You’d be surprised how much you can potentially save.
Continue eliminating those outstanding debts, and create savings for yourself. Add this extra money toward your overall income, and put away at least 5 percent toward your savings. This can really help to put you on track to start building wealth.
3. Give Yourself a Raise
With all the reduction of debt and building of savings that you’re doing, don’t forget to give yourself a raise this year. Muster up the strength to ask your boss for a raise, or consider starting a side business for yourself to increase your streams of income. If you’re an entrepreneur, consider raising your billing. Use this additional income to continue shaping your financial wealth strategy.
4. Start investing
Investing is one of the best ways to increase your financial platform. All your newly found savings will be better spent, by creating an investment account so that your money can start earning income through smart investment strategies.
Consider a Roth IRA or 401K to get started. A Roth IRA is a way to invest and exercise smart tax advantages for yourself while a company sponsored 401K can add additional income if your company matches your contributions. If you’re a solo entrepreneur, an Individual 401K has great advantages, since it gives you higher contribution limits than traditional retirement accounts.
When you do begin to invest, ensure that you’re well diversified and contribute on a regular basis.
5. You are Your Best Investment
Remember to invest in yourself first. You’ll enjoy all the hard work that you’re doing more if you take the time in invest in your number one asset, which is you. Choose to make 2016 amazing for yourself by learning new skills, that make you even more competitive in the marketplace. Take a course that helps you to learn more about how to build your business. Improve your negotiating skills or acquire a skill that will make you more competitive at work. Travel, have more fun in your off hours. Create and exercise regimen, and definitely, rest more. When you invest in yourself, everything that follows will be better and more enjoyable.
Take control of your New Year and build success in 2016!