New Year’s resolutions don’t have to be reserved for diets and exercise. You should also take a look at your finances. If 2021 left your finances feeling a little shaky, here are a few financial New Year’s resolutions that may help you recover.
1. Budget Budget budget
Budgeting can change your life.
With a budget, you can find extra money to pay down debt, plan for large future purchases, discover ways to save money on everyday expenses and remove the fear and stress from personal finances.
2. Evaluate Your Eating out Budget
Constantly eating out is a habit that drains your wallet.
Rather than eating out, you could eat more meals at home. Cooking is one of the most useful skills you can learn. It saves you money, provides you with access to healthy food.
3. Review Your Subscriptions
Subscriptions have a way of gobbling up your money.
How many paid subscriptions do you have? Assuming you have three that cost N1000 each, that’s N3000 a month and N36,000 a year. It may seem like no big deal, but that’s extra money that can help build your emergency fund.
4. Pay Yourself First
When you pay yourself first you are making your long-term financial well-being a priority.
This simply means putting money aside for your financial goals before focusing on what is seen as important needs. When you make your financial goals a priority you will be able to create healthy money habits.
5. Save Something Every Month
Sometimes the hardest thing about saving money is just getting started.
While saving for the future can seem overwhelming, if you start by just putting away a little more money each month, it may be easier than you think. Little savings can add up, especially if you do it consistently over time.
6. Pay down Debts
Debt is costly.
The interest can rack up hundreds to thousands of naira a year. Paying off debt on time can save you a lot because you aren’t wasting money on interest. One of the easiest ways to tackle debt is using the debt snowball method.
7. Start Investing
An effective way to put your money to work and potentially build wealth is by investing.
It is also how you take charge of your financial security. Investing enables you to be independent and not rely on the money of others in any event of financial hardship.
8. Analyze your insurance
Being insured should be a priority as it provides you financial protection against unexpected loss.
If you don’t have insurance, ensure you add it to your list of things to do this year. It is also necessary to regularly review your insurance policies so you’re not caught offguard.
If you want 2022 to be a better year for your money, consider making these 8 financial New Year’s resolutions. Whatever your resolution might be, ensure there is a balance between challenging yourself and setting realistic expectations.
Start your 2022 the right way. The path to financial well-being starts here: www.overwood.ng. With a free OVERWOOD account, you have a single place to safely invest, track your progress and watch your net worth grow.
You never fail until you stop trying.
– Albert Einstein