As 2018 is coming to end, most of us tend to look back and take stock of all the things they haven’t accomplished. But instead of dwelling on failures and goals we haven’t completed, let’s turn a new page and make a list with resolutions for 2019.
Figuring out what financial plans to put on your list might be overwhelming, so we’ve compiled a list with 5 smart money resolutions along with some handy tips on how to keep them.
1. Start a rainy-day fund
If you don’t have one already, New Year is a great time to start an emergency fund. None of us know what the future might hold, but with some money set aside, you’ll be prepared to face the unknown with confidence. The money from your emergency fund will come in handy if you lose your job or decide to make the down payment for your dream home.
Our advice is to automate a part of your paycheck to go directly to a special account for savings every month. Choose an amount that you are comfortable with and challenge yourself to live off of what’s left after the automatic transfer.
2. Track expenses daily
Expense tracking will make you mindful of your money and improve your financial life. Furthermore, mobile apps like LeoPay makes it easier than ever to keep tabs on your expenses and all the payments you make – all that via your smartphone.
The LeoPay mobile app allows you to track how much you spend and on what. Plus, the app gives you the option to receive real-time spending notifications and set spending limits on your debit card, allowing you greater control over your expenses.
3. Check your credit score
Checking your credit report once in a while is good, but if you know how to read it and define the areas which need improvements – that’s great. So, roll up your sleeves and understand the factors that affect your credit score and then figure out a way to overcome them.
Having a good credit score can help you qualify for better loans with a lower interest, which can save you lots of money in the future. A high credit score can also make it easier to get rewards credit cards, which offer additional perks such as cash back and travel deals.
4. Commit to a no-spend challenge
A no-spend weekend or day may sound like ‘mission impossible’, but if you have a friend by your side, it’s not only a feasible but also a fun way to save some money.
On the no-spend day, no money should leave your hands or bank account. You can spend the day playing board games or hiking instead of hanging in a bar, and you can cook lunch and dinner with the products you already have in your fridge. The no-spend day will help you understand the value of money and make you reassess your everyday spending habits.
5. Cut back on bad financial habits
Spending too much money on unnecessary stuff? Running late on your credit card payments?
No matter what unhealthy money habit you have, the coming year offers you a chance to change it. All you need to do is to set a clear, specific and positive goal. For example, “Pay my credit card in full every month” or “Save up to 15% of my paycheck” instead of “Don’t spend too much”.
Once you set your goals, stick with them and don’t give up even if you fail. Good changes don’t happen overnight and require hard work.
Making a list of New Year’s money resolutions is the easier part – the more difficult part is to keep them. But if you have a plan in place and regularly check in on your progress, you will move closer to making your New Year’s resolutions come true.