Build a new financial you! Five financial resolutions for 2019
With 2019 around the corner, we’re all preparing our new year’s resolutions, which always and inevitably seem to start and end with a rejuvenated sense of healthy self and our determined need to shed those much-loved vices and waistlines. Well, good for you! If you need a fresh start, there is no better time for one. Come January 2019, come the new-fangled, better looking and happier you!
But, what about your money? Which financial resolutions are you lining up for the new year? When it comes around, will the new you also come with a refreshed financial attitude and renewed set of stress-relieving money goals? It should! Your money, after all, is an extension of yourself and how you approach it can go a long way redefining 2019 and how it plays out, for good or bad.
Here at MyBucks, we believe that 2019 is the time for financial rebirth
As a company dedicated to help your cash flow, it makes sense that we also believe that it’s never too
late to redesign your financial self and start a-fresh.
So, here as the building blocks to help, are five financial resolutions to help build a new financial you.
1. Be brave and set new short-term financial goals
Setting new financial targets is more than thinking about what you want. It should be an intensive session of financial introspection – with paper, pen and a determined attitude. What is it that you want to achieve in 2019? Do you want to be debt-free for example – or do you want to go on a holiday? Whatever it is, figure it out what it is and write down five financial goals that you would like to achieve in 2019.
Then, figure out how much each costs and when you will need the money by in order to make them a reality. Then, when that is done, be smart and rank the five options from most important to least important by being as realistic and fair to yourself as possible.
Then, finally, be brave and remove the bottom two. For now, you should have 3 important short-term financial goals for 2019.
By the way – saving money should not be a financial goal itself (you’ll find out why in point 4). For now, your financial goals should be tangible events or targets that the act of saving money and wise-spending can help achieve.
2. Redo that budget!
Yes, you’ve heard it more than once; you’ve probably heard it more than a hundred times! But, never again will there be a better time to redo that long-forgotten budget, and for the sake of your financial sanity, never will there be a better time to stick to it.
Here’s our tip. Take your three financial goals and figure out how you will have to adjust your spending in order to achieve them. Remember, prioritise your necessities as always – such as monthly food, bond repayments, vehicle finance instalments, medical and other insurances, and of course, debt repayments. Then, when they’re all in order, look to include your financial goals in such a way that they’re affordable and reachable.
Now, consider this again: Can you achieve all three financial goals in 2019? If you cannot realistically achieve all three, remove the least important of the goals and only accommodate those which are achievable in the calendar year, even if you only have one left.
Don’t worry about dropping financial goals for now. We’ll put those aside for 2019. For the moment, it’s important to be brave and choose the most important and achievable in 2019.
3. Be disciplined – live by your budget!
There is nothing more important for 2019 than being financially disciplined. Remember, it is a lot more difficult to achieve your goals – goals that you set for yourself when you were in a financially sober and determined space – if you cannot maintain the discipline and energy.
Like healthy habits forgotten, your budget will not benefit in the long run if you revert back to your old vice-ridden ways. So, now that you have set yourself a budget to achieve your goals, live by it! Here’s a tip to help:
- Set aside a morning every month where you consolidate your spending for the month past, and ready
yourself for the month coming. Is your budget working? Are you spending as you anticipated? If it is
becoming difficult to maintain, adjust it to ease the pressure – but remember to be brave. Don’t
adjust it for the sake of it. Achieving financial goals takes sacrifice. Is the short term gain worth
missing out on your set goals? Probably not.
4. Save, save and save some more!
Here it is: Saving should not be one of your financial goals because saving itself should be written into any budget as standard, financial goal regardless. It should be considered a necessity. That is how important saving actually is. Even if it is just K100/week to start, saving over a year or a period of years can go a long way alleviating financial stress. How’s how:
Firstly, a part of your savings should be considered as the emergency kitty – you know, for all those unanticipated costs like fixing a broken car. Emergencies, as you know, are money-draining and stress-filled, so rather alleviate the inevitable by saving for it. There is truly nothing kinder you can do for your future financial self.
Lastly, saving is also important for other financial goals, which, if you remember, you were brave enough to write off in point 1 and 2. Yes, remember those goals you wrote off as the least important? Well, we haven’t forgotten about them and you shouldn’t too! Saving can help bring them that little bit closer, so that in the years following they too can become achievable.
5. Set long-term goals. They’re the most important of the lot!
Nope, we haven’t forgotten about them either, and they’re part of the reason you’re saving – to also see them realised! No, they might not be as immediately important, but they should always be present in the financial umbrella of your life – and one of the important reasons you work to save in the first place. As such, they should have their own savings account, and should be written into the budget as a necessity.
These goals might be saving for your child’s university fees in 18 years-time, or that ultimate world trip you’ve been thinking about for years.
As long-term goals, they can be aspirational, brilliant, and often filled with sparkle. Much of the time, they should be the fuel that drives any budget forward.
Remember, long-term goals are only achievable if you allow your short-term spending habits to be packed with spending discipline. Trust us, being a spending disciplinarian is the best financial self you can be. As far as finances go, it’s all you’ll ever need to be. If you’ve planned well, the rest will fall into place.