It’s another year! And we're certainly dreading our feet to work once again after the holiday seasons that passed just too quickly isn’t it!
But on top of all the anxiety that one might face with the new year, we may be setting ourselves some new year resolutions, one common one might just be our financial resolutions.
Resolutions shouldn’t be daunting at all to avoid procrastinations so today we will be sharing how we can keep our resolutions simple to follow through this new year!
1- Be comfortable with our resolution
Whether or not we are planning to save more or start on a reading habit, we should be setting something achievable and comfortable for ourselves.
Planning to start saving 50% of our income every month as someone that doesn't have a saving habit to start with might be really overwhelming.
Remember, we are running a marathon here hence keeping ourselves comfortable at our own pace will be crucial to keep our resolutions going and sustainable
2- It’s okay to take a break
Maybe you met a friend on the train and missed that one episode of a podcast on financial literacy due to the chat. That is totally okay and there will always be another time to catch up on that. As long as it does not become an excuse for us to procrastinate on sticking to our resolutions, it is okay to take a break.
3- Have an accountability partner
YAY! This is one of our personal favorites!! What other better way to start off the year’s resolution with a partner to stay accountable with!
Whether we are planning to start our resolution with an investment goal or clearing our debts, having someone we are comfortable with in this financial journey might just make things seem more achievable to stick through
As the saying goes “If you want to go fast, go alone. If you want to go far, go together”
So now that we know how we can make our resolutions stick and seem less daunting, as a bonus for staying on, we will be sharing some of the common resolutions for this new year that you may want to consider.
1. Decluttering to recoup on unused items regularly
Maybe you have an old electronic that you have not been using or an apparel that you cannot fit into already. Setting a time to declutter and list it up on platforms such as Carousell or Facebook Marketplace might be a way to help us recoup some money back that can help us with our saving goals too!
2. Setting up a specific saving goal
Whether or not we plan to set a down payment for a house or planning for a travel trip, it may be a good time to set such specific goals and look at how we can work towards them within the next 12 months that we have with us. With the time horizon that we have, anything will be more than possible.
3. Plan a spending budget
Now that we have set a specific saving goal, it may be a good idea for us to set a spending budget to work towards it. Depending on how much we plan to save for the year, we can start working backwards to set a budget on our spendings.
Again, make sure that we set a comfortable budget for ourselves to avoid the likelihood of procrastination too.
4. Start Investing and make your money work harder
Make your money work harder for you! How? With the word that is all over the internet these days – “Investing”
Whether or not we know how it is done, we know that we should be investing because of inflation.
“But how” you may ask. For those that may not be sure on how you can start investing, you may consider buying into Unit Trusts or Exchange Traded Funds which are less risky since these are managed and are well diversified.
For those that are interested to know more, we have also written an article on the differences between a passive and active approach on investing.
5. Review your needs and insurance plans regularly
Our needs and situation might have changed now compared to a year ago. Maybe you might have procrastinated to start a coverage or the change of job that might have also changed your goals or coverage needs.
This may be a good time to do a review on your plans and coverage. Whether you feel that you are underinsured or over insured, setting a time with your financial advisor for a review may be the first step to start the year right!
New Year resolutions may be daunting, even more so when it comes to financial resolutions. However, with the right people we can work with, it will definitely be less stressful and less daunting to start with. Whether to stick with a saving habit, start investing or getting covered for the “what-ifs”, feel free to contact our friendly advisors for a chat. We are always willing to hear from you and help you with this new year’s resolution!
Happy New Year Everyone !
C x D Learning about financial literacy can also be fun and easy ! Stay with us in this financial journey one post at a time to find out how ! If you haven’t already, you can check out our other work down below too, happy learning and reading ! Curious about different investing strategies ? Find out here! https://www.janeongdistrict.com/post/everyone-can-reap-the-benefits-of-active-investing-here-s-how Plan to save more ? Here’s how to get started 🤨 https://seedly.sg/opinions/plan-to-save-more-here-s-how-to-get-started
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