In order to live a stress-free life, it is important to always be aware of your finances. Unfortunately, we often find ourselves unable to apply our money in the most beneficial ways. If we do not know how to manage our personal finances, it is nearly impossible to build our assets and ultimately achieve financial freedom. Every new year comes with new hopes and new challenges. If you want to achieve certain financial goals by the end of 2020, you should stick to the following guidelines for finance resolutions.
Create a budget and stick to it
One of the simplest personal finance resolutions, creating a monthly budget is important. It gives you a clear idea of how much you are going to spend on personal expenses throughout the month. Start with listing your bigger expenses like your rent, car bill, and credit card bill. You can then work your way down to smaller items like gas, groceries, etc. This way you can have a good idea of how much money you will be spending in each month.
After doing this for a few months, you will have a better idea of how much you are spending compared to how much you allotted for. If you have had trouble sticking to your budget in the past, use an app that will keep track of your money and help keep you closer to your budget.
Pay off your credit card debt
Credit cards can be great for building credit and earning points/cash back depending on what type of card you have. However, they also can lead to more debt if you are not careful. It is okay to use a credit card if you are aware of how much money you have in your bank accounts and can pay off the card in full every month. Set a monthly reminder to make sure you pay your credit card bill on time. Most banks will also allow you to set up automatic payments so that you can live with peace of mind knowing that your bill will be paid. Always make sure that you have enough money in your account to pay your bill off every month.
If you are currently in credit card debt, make sure to pay it off as soon as possible as credit card debt increases rapidly due to such high-interest rates. Consider seeing a credit card counselor if you are struggling with your payments or are currently in debt.
Start an emergency fund
Almost 80% of adults have admitted to not having an emergency fund. If you find yourself in that group, now is a great time to start saving up in case of an emergency. Life is unpredictable, and it is always good to be prepared in case of any unforeseen circumstances. If you have an emergency fund, then you can live with peace of mind knowing that if anything unfortunate happened, it could be taken care of. You can also buy various insurance policies that will give you a lump-sum amount at the time of maturity. A life insurance policy is a good example of this. If you do not know what type of plans to look into, consider reading various finance blogs online that will help guide you in finding an insurance plan best suited for you and your lifestyle.
Planning for emergencies is an important aspect, especially if you run your own business. There are insurance plans for almost any kind of industry from photography insurance, to personal trainer insurance, and insurance for dog trainers. No matter what industry you’re in, its always good to plan for emergencies.
Boost your retirement savings
Saving up for retirement is one of the most significant finance resolutions that every person should make in 2020. You can purchase a variety of retirement plans that suit your budget and your needs. There are many reputable companies that can help you find the best retirement plan with the lowest premium rates, benefits, and room for flexibility.
Invest more
Investing is one of the best ways to make more money long term. It is smart to make your investment portfolio diverse with different stocks and investments so you are not putting all your money in one place. Having a variety of assets helps when investing in new opportunities as well. Stocks, bonds, mutual funds, and land are all great places to invest your money. If you need some assistance when it comes to investing, hire a broker to advise you on where to appropriately spend your money.
Final Say
We hope that these finance resolutions help you have a better understanding of ways to make your money grow. When in doubt, it is always beneficial to get help. Read reputable finance blogs, download budgeting apps, or reach out to someone in the finance world in order to make sure you are getting the most accurate and helpful information. We hope you find financial success in 2020!
Jordan Rosenberg is a public relations specialist involved in writing content in the finance and marketing industries. She currently is a contributing author for 365 Business Tips and conducts outreach for e-commerce startup brands such as Rothy’s. Her educational background in digital media combined with her experience in event advertising and marketing helps her provide insight into a variety of subjects and strategies.
