9 Resolutions to Ensure Your Financial Prosperity in 2015
The New Year sees most of us making resolutions to lose weight, eat properly, get in physical shape and numerous other notions. One area we often either omit completely or make generalized statements about is our “financial health.”
Simply stating "make more money" or "save more" are likely to have the year ending with nothing having been accomplished. What needs to be done is devising a plan of action that will break down your general wish and turn it into a doable action plan.
Here are nine resolutions you can put into action that will see the coming year bring about a better financial situation.
Set financial goals - Rather than simply saying "make more money", decide how much money you would like to make this year. Having a pre-determined amount in mind makes it possible to break the goal down by the month to see if you are on track or need to make adjustments along the way.
Prepare for emergencies - Things like sudden illness, a car breaking down, or a furnace going can all add strain to your finances. Set aside an emergency fund that can be used for these kinds of emergencies so your regular finances won't have to bear the weight.
Consider interest - See if you can open a savings account that gives you a higher rate of interest than your current one. Also check credit cards and see if you can combine payments into a lower interest rate card rather than several high interest accounts.
Pay off debt - Set up a system that sees you steadily reducing the amount of debt you owe. When one debt is paid off, redirect the money to your next debt and so on until each is paid off, eventually allowing you financial freedom. For example, put all your bills in a sequence according to size and decide how much you can afford to pay on each per month.
When the smallest is paid off, take the money you were paying on it and apply to the next highest. Keep this up until all the debts are paid off and then you can take the money you were spending on them and put in your savings account each month, without missing the money.
Reconsider your savings - Review your expenses and see if there are any places where you can reduce spending, then put the saved money into your savings where it will accumulate interest over time. You will be surprised at what can be reduced without making you feel deprived.
Plan for retirement - Too often we work for years, thinking retirement plans can wait. Before you know it, retirement is upon you and you haven't saved anything to make those years livable. Plan now for retirement so you are prepared when the time arrives. Maybe you will want to travel or retire in a warmer environment. You will need money to realize those dreams, and planning now will help you save for those years without feeling strained during the process. It can also help save money on taxes.
Write your will - Knowing exactly what you want to be done at the end of your life will help you plan things like how your family will be taken care of at your passing. While you are creating your will, consider adding burial insurance and a prepaid funeral to help alleviate the financial stress during that difficult period.
Keep great records - a dependable financial recording system makes it possible to not only see where things are working and where they are not, it also makes it more likely that you will come out in a better position at tax time. You will be able to take advantage of all available tax credits and will be less likely to forget things.
Seek help - Sometimes we can't get things in order ourselves. Finances deal with math, which is one of the least understood concepts for most people. Do not hesitate to seek advice from a financial expert to at least get your new financial plans set up and running smoothly. In the end, the money you save will be more than you compensate for the cost.
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If you need help coming up with some extra temporary cash to set your plan in motion, stop by CashOne today and discuss a payday loan.
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