You have just entered 2018 with fresh hope, enthusiasm, and resolutions for the New Year. Whether you want a vacation, car upgrade, good investment, or become better organized with your finances, you have more potential for accomplishing your goals with a solid financial resolution. Your financial resolutions for the New Year should be simple, tangible, and accountable.
Here are a few ways to set and achieve your financial resolutions in 2018:
Monitor Your Credit Report
Go through your credit report on a regular basis to rule out any faults or fraudulent activity. You can request a free annual credit report from some of the leading credit reporting firms. It’s now easier for you to monitor your credit and be aware of any prominent changes in your credit report by registering for free credit monitoring.
Pay Bills Just After Payday
Paying your bills right after payday saves you from getting penalized for late payments and helps maintain your credit score. It also helps you avoid indulging in purchases that are expensive and unnecessary.
Get on Top of Your Debt
Make a practical goal for what amount you want to set aside in the new year for reducing your debt liability. Split your debt amount into manageable chunks. Some financial experts recommend the snowball method, which can help you focus on repaying your highest interest debt first.
Diversify Your Credit Cards
Broadening your credit card usages enables you to acquire the best possible status on each card, instead of settling for ordinary terms on a single card. It will also support you in reducing the expense of your debt, bearing in mind that regular purchases won’t be increasing your average routine bills.
Create Your Emergency Fund
An emergency fund gives you a buffer in the form of extra cash in the event of an unforeseen unemployment or medical emergency. This is the reason why you should create some exigency reserves on a priority basis during a budget makeover. It is recommended to create a fund with take-home income for a period of about 12 to 18 months.
Revise Your Credit Score
The foremost means of improving your credit is to possess an active credit card account which is maintained towards having a good standing. Your card will then start to acquire a positive status which will be reported to the leading credit bureaus on a monthly basis, while helping you further improve your credit score.
Improve Your Financial Knowledge
Enhancing your knowledge about money and private finance will help you decide smarter. It is advisable to begin by evaluating your standing through an online quiz. The results will give a clear picture of the areas of improvement. By 2019, quiz results should be better than the year before.
Stick to a Budget
Making and following a budget will help you avoid overspending or neglecting to plan for future expenses. The steps for making your budget include preparing a list of recurring costs in a decreasing order of significance. In case your monthly expenses exceed what you earn, start minimizing expenses from the lowermost portion of the list.
Get a Better Job
Enhancing your take-home salary is one important way of improving your financial health. Consider finding a better job in 2018, even if it means relocation to a different city. You may also consider it worthwhile to look for ways to increase your current earnings.
Don’t Neglect Your Health
Caring for your health in the present can help control future health-care expenses. There is a definite link between physical, emotional and financial well-being. Feeling better will provide the base for wiser financial decisions with a greater emphasis on the long-term.
Set Your Financial Target
Your financial goals should be specific, realistic, measurable, achievable, and timely. They should also be divided further into practical steps to make them more achievable. Plan for both your short-term and long-term goals by taking into consideration your existing financial position – that includes your income, savings, insurance, debts, investments, and superannuation.
Review Your Insurance Policies
The new year can be a great time to assess your insurance policies to ensure you are receiving the best deal and are getting an adequate coverage for your assets. Explore other insurance company policies to see if you can upgrade your policy for a better deal.