Deciding to join a gym or eat more healthily are noble goals to add to your list of New Year’s resolutions. But, your finances are also important. We’ve put together five financial New Year’s resolutions to help you in 2016 and beyond.
With more immediate financial obligations taking up your attention, retirement is often the last thing on your mind. Why not commit to making 2016 the year you start saving, or saving more for retirement?
Give up credit cards
Beyond the immediate cycle of debt, long-term credit card dependency can negatively impact your credit rating. Commit to living within your means and paying off any credit card debt in 2016. If you’re keeping a card for emergencies, make sure it isn’t in your wallet – this way you won’t be tempted to use it every time you open your purse.
Make a will
This it may not be something you want to think about over the festive season, but having an up-to-date will is a necessity. It will ensure that your financial affairs are in order if you pass away unexpectedly, and alleviate unnecessary stress for your family.
All it takes is an appointment with an estate planning attorney to make sure your will covers everything you need it to.
Get to know your finances
Find out how much you owe on your credit card and store accounts, take stock of your assets and debts, and look at your monthly debit orders. Do you know how much you’re paying in bank fees each month or the interest rate on your credit card? Answering these questions will enable you to identify areas that need a little extra attention.
Make a budget
According to an international survey, only 39% of adults have a budget. If you fall into the remaining 61%, let 2016 be the year you change that.
The easiest way to start is to look at your bills over the past few months and write down your recurring expenses. Next step – prioritise. Rent, food and healthcare will likely be at the top of the list. After that, allocate set amounts to other expenses – and make sure you stick to it every month. While budgeting can seem like a complicated or intimidating concept, it is quite simple in practice.