Five Resolutions for a Brighter and More Prosperous New Year
The New Year came with a big bang, alas, we can start anew and write a new chapter of our lives. As we welcome the new year, we have increased zest and high hopes that this will be a fresh start. All of us are hoping that we could once and for all fulfill our dreams or start transforming our aspirations into reality.
New Year’s resolutions are made to remind us of the things that we want to achieve, to pick up where we left off or to overcome our fears and hindrances. They should be made sensible, simple, achievable and doable. You may want to lose some extra weight, promise to be healthier and most importantly among the top list in your resolution would be your financial resolution. Your financial resolution once achieved would help you pave the way towards financial freedom.
First of all, before you make a list of your financial resolution you need to assess your finances and study the components and factors. Analyze your cash flow and start from there. Once you are done with your self-introspection and have figured out the goals you would want to attain for this coming year, then it’s time to create your financial resolutions. Here are some ideas for a brighter and more prosperous new year.
Time to Pay Off Your Debt
Debts should be settled first before you can move on and save. The more your debt is prolonged, the higher the interest would be and the more your finances would be held hostage and not be able to grow. If you can’t pay off your debt at one time, try to reduce your debt slowly in a staggered manner until you have paid everything off. Because once your debt is still there, especially if you have a high interest rate the more it would pile up if left unpaid. Try to settle your debt this year so that you can move forward towards your financial plan.
Create an Emergency Fund
If you don’t have one yet, then this is the right time for you to have one. Your emergency fund should be equivalent to your total salary for six months. This fund will cover your urgent expenses such as sudden hospitalization or ailment, if you are laid off from your job (hopefully not) and other urgent concerns that are unforeseeable but would likely to happen. Most of us do not have such that’s why the only option for whenever any of the circumstance occurred is to borrow from friends and relatives, cash out on your savings and there goes the deterioration of your financial plan. You can avoid that by having an emergency fund so if you don’t have one, you need to set up one now.
Set up a Health Fund
Ailment, diseases and other health problems are difficult to experience not only for your body per se but also for your pocket. Diagnostic exams, medications, consultation fee are getting higher as the days go by. If you would sum up every expense with regards to you and your family’s health (if you have your own family) for sure this would cause a significant drain on your finances and to stop this you should set up a health fund now or have a health insurance. Most of the private companies do offer a health insurance so if your company has one for you then you are lucky, but if you don’t have one then you better check options and avail one. Always remember that health is wealth and that you are the most important among all of your investments.
Get a Life Insurance Most Especially if You Have Dependents
The common misconceptions of people about life insurance is that it is only for older people or for people with illness but that is not totally true. Actually, the older you are, the more expensive your premium would be. It is best to get a life insurance when you are younger and when you don’t need it most. The closer you are to the retirement age, the less possible that you would be approved by an insurance and that is what most people don’t know. If you have dependents or a family who are on your shoulders, the more you need to have an insurance. Life insurance nowadays are no longer confined to the traditional scheme. Life insurance now have other linkages like investment funds, education funds, health funds and so on. In the country today, there are top companies that are offering life insurance with other benefits as mentioned earlier. You are not only secured, but you can also let your money grow in time. Do your research and see which plan is the most suitable for you.
Start Investing for Your Long-Term Goals.
Do you dream of having your own house in the future? So what are you doing about it? If you are dreaming of having your very own space in the future, then you better start working on it. You need to find the right investment for you to grow your money and generate more profits and help you achieve your long term goals. Look for the right investment that can beat the inflation, let your money grow over time and accumulate more and let you reap your rewards when you need it the most. This does not happen magically, you need to study the market, check out and exhaust all the options, research and do your survey before settling for the investment of your choice. Do take note that investments are risky, so you better put your head into it before making your very important decision.
Welcome the New Year With a New, Prosperous Outlook!
The New Year has brought hope for all. We do hope that with all the given top tips above, you would get your needed help to make the next year something to look forward to. Claim this year and make it happen!