3 Ways to Stick to your Financial New Year's Resolution this 2021.

This year has definitely been the longest ever, and I'm sure we’re all glad it's finally coming to an end (hopefully). With every new year, comes the phrase ‘New Year, New Me’, and a whole new set of new year resolutions to complete. Because we know, nobody actually sticks to their new year resolutions, here’s 3 ways to stick to your financial new year’s resolution this 2021.

1. Write down your goals and how to achieve them.

A Harvard Business Study found that people who wrote down their goals are 3 times more likely to achieve their goals. But, writing them down is definitely only the first step to achieving them. By setting both short-term and long-term goals for yourself, you will then tend to motivate yourself to complete those short-term goals. For example, if your goal is to save 5,000 for the entire 2021, the large might seem a little daunting. By breaking it down into a day-by-day goal, you’d only have to save about $13 a day, making it easier for you to fork out that money. By doing this, you not only stick to your financial goal, but will also be better at managing your finances, such that you have to work around your daily budget with a deficit of $13.

2. Review your financial plans with your financial service consultant.

I’m sure many of us are unsure of how much money we will need in the future, let alone how to go about accumulating that amount. This is where a financial service consultant will best be able to assist you. With any one of our friendly advisors, you’ll have a comprehensive financial plan that caters to you. Alternatively, if you already have one, make sure you do a yearly review, to factor in any new expenses or big ticket items you may need to start saving for.

3. Growing your money with minimal effort.

When it comes to growing money without doing anything, many of us tend to turn to banks and tap on their interest rate. But, did you know that the average interest rate among banks in Singapore is only 1.23% per annum? That will probably give you $8/month, assuming you’ve got a minimum of $10,000 in your bank account. Although, we know most of our interest rates are around 0.05% (cues sad music). Well, wipe those tears, because there are other alternatives! By parking your money with AIA, you can even see your money grow up to 4-5% with AIA's investment plans. The only setback would be that you’d be unable to withdraw your money, and you’d have to be religiously putting money into the AIA account. Weighing the pros and cons, not sure about you, but i would still rather get the 5% growth rate. With the money in the bank account, I’d probably spend it on Shopee’s sales instead of saving it anyway.

When it comes to financial goals, it is of the greatest importance to be disciplined. Many of us often spend before we save, and can’t bring themselves to give up that drinking session with friends, or movie with your boyfriend, just because ‘I won’t get this opportunity again.” Opportunities for fun will always be there, but the money you spent may not come back as easily. If you think you’re unable to manage it by yourself, a consultation with a financial service consultant might just be your saving grace. It’s time to make 2021 your financial year. Happy New Year, Happy Saving!