Financial Resolutions for 2017
2017’s first quarter starts to roll out as a promising year. Several individuals have taken upon themselves to abide by their annual New Year Resolutions which they hope to execute until the end of the year.
The promises made to oneself can vary from person to person. Some follow a strict exercise regimen to weight a bit less, while some religiously follow their prescribed diets to finally achieve their dream body goals. Other aim for their next promotion, while others make it a point to look for greener pastures. Dedicated individuals may even want to spend more time with their families, specially during the weekends.
While promise-savvy individuals are well on their way towards their fitness, work, and social goals, it is important to note that financial resolutions could be neglected. It may cause people to struggle to make ends meet. This is a common occurrence for most. And truth be told, the bonuses from the Holiday Season may have already dried up.
In today’s day and age, being financially smart is an important skill to have. Although it might be intimidating at first, there are small steps one can take to ensure financial security this year.
Here are some financial resolutions you can take this 2017:
Learn how to budget
The most basic financial skill to have is budgeting. It’s the necessary first step to a wealth of knowledge in handling money. And as a more basic feature, you will never wonder where your money goes.
A very basic step to take is to make a basic budget, which breaks down your spending and earnings. You will get a clearer picture of how much you need to spend every month. So then you can track how much you earn, and how you can part your money, with savings to boot.
Have an emergency fund
As you create and gauge your monthly budget, aim to set aside a portion of it for some unforeseen circumstances. It could be for a serious injury, unexpected sickness, or just a surprise bill> It is important to realize that budgets should always have an allotment for the unexpected.
Setting aside a certain percent of your take-home pay, say even 5 to 10 percent, will add up, and you will have a lofty amount of money to fall back on during rainy days. Emergency fund must never be touched unless it is a real emergency. No, you cannot “borrow” from it when there’s a flash sale, or a weekend deal you just need to pounce on. Learn to discipline yourself.
If you have no problem in micro managing the ins and outs of your budget and money, it may be time to steer your way into certain investments.
Without affecting your daily needs, you should aim to have a fund which you can set aside — to be spent on investments. These could be new equipment for your side gigs, stocks, or even long-term goals like houses. There is a certain feeling that comes with being able to take down some long-term goals, one by one.
A final, finishing touch to most people’s financial plans is to get insurance.
While the emergency fund could be useful, insurance policies are larger safety nets, which come in handy for larger, more serious problems. Be it for life, or property, it is comforting to know that there is something to fall back on in the case of unforeseen events.
There are several insurance policies available, and without these, many people will subject themselves to get high-interest loans, which may cause more debts in the long run.
Several insurance policies are affordable and flexible depending on the individual’s budget, so it is certainly a recommended investment, which is hassle-free at that.