Do you realize that New Year is a good time to start your
money resolutions? By knowing your current financial position, you will easily start
the year with a few important financial-planning goals. I have read an
interesting article about this matter in Personal Money Magazine for this month
which I think will benefit all of us. Enjoy this!
10 Money Resolutions
for 2012
1)
Stop spending freely
Remind yourself to be a financially savvy by learning to
control your spending habit. Tick on the important things first before you
overspend. If you have problems with that, stop using credit card!
2)
Monitor your cash flow
Keep track of everything you spend on will help you to keep
more of your cash in your savings account. Monitor all your cash inflow and
outflow to get a big picture of cash position. This need discipline but try it
for a year. You will see the progress.
3)
Pay yourself first
Don’t confuse. Pay yourself means; you should save for you
own benefit. You have to put/save at separate bank account depends on your
affordability (ideally 10% to 15% of your gross income). If you are not
discipline enough to save, choose to set up an automatic bank transfer.
4)
Set financial goals
Don’t set yourself for something that is impossible to
achieve. Try setting goals with small
attainable steps, surely you will achieve that. Besides, prioritise your
financial goals by stating date and amount. It is easier for you to stick on
it.
5)
Get adequate protection
The beginning of the year is a good time to identify gaps in
your insurance coverage, in case of the increase of salary, birth of a child
etc.
6)
Manage your debt
One way to get rid of debt is to stop adding more of it and
to look at your budget to see how much can be put aside to clear it.
Ironically, debt will increase together with the increasing of your
income. You should end that. Aim to
eliminate all your debts and it will, slowly.
7)
Involve your family
Teach your children to create and maintain a budget. Share
with them the important of it and this will lead to greater financial
responsibility.
8)
Develop an investment plan
Start your investment plan based on your financial goals.
Choose the best that can grow faster than inflation and review it when needed.
9)
Contribute to charity
Many of us want to donate their money but isn’t possible
because of the money strain. But after understanding your financial position,
it is possible to do the contribution. Lets track out financial wisely!
10)
Improve your financial literacy
We should be financially sound to make a wise decision. You
can improve it through magazine, books or seminars offered by financial
institutions. Also consider finding a financial mentor. Get someone who is
willing to give you good practical advice.
Found it useful?
These steps, you should consider in your New Year resolutions. Practice
it step by step. Learn how to do it, disciplined it and implement. You will
manage to improve your financial planning. Start it now. I bet all of us can.
I will keep sharing
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