Money Resolutions for 2012

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.

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