Financial Wellness � New Year�s Resolutions

Correspondent | Monday January 25, 2016 14:07

We always promise ourselves that “this year is going to so much better than last year”.  Mentally we start to prepare our goals and our dreams for this year. We quickly get swept back up into our busy lives and we forget to focus on what we want for 2016.    Goal planning at this time of the year is made even more difficult as we reel from the consequences of our Christmas over-expenditure. We suffer from buyer’s remorse as we look at our bank balances, wondering where we went so wrong and how we are going to survive until the end of January. 

Be assured, there is hope. Now is the time to put your best foot forward, hold your head up high and follow this New Years Resolutions Plan.

 

Goal Setting

The problem is, just thinking about your goals and dreams is not committing to them.  You must make a conscious decision to clearly define what you want to achieve this year.  Once you know what your goals are, it is important to write them down.  To keep motivated, keep reading them, perhaps once a month, and keep tabs on your progress. Goal setting can be intimidating, even scary, but remember this is your private dreams, not for public viewing or for anyone’s opinion.  Having the courage to dream big or aim high is important, be a better version of yourself this year.

 

Yearly Budget: Plan Your Spending

It is more important than ever to budget the money you have each month.  You cannot afford to spend all of your earnings without planning. If you know where your money must be spent, you will know exactly how much you have left over for the luxuries in life.  Remember to budget for expenses that aren’t monthly payments, such as school fees and don’t forget to keep some money aside for your next vacation. It will help get you out of the post – holiday depression.  Make sure you pay your bills first and yourself second. 

 

Prioritise Your Debts and Pay

Them Off Quickly

Schedule all your debts in order of the amount of stress each one causes you.  As you pay one debt off, use that money to pay off the next one. The quicker you can pay off your debts, the less the interest you have to pay.

 

Don’t Get Further Into Debt

Getting deeper into debt is only going to make your future self poorer.  Who’s going to pay for the loan next month? If you don’t have the money today, what will change next month to allow you to afford the extra loan?

Shop Smart: Plan your monthly shopping trips

Write a grocery list! Do a separate list for each week of the month.

Stick to your grocery list - do not give in to temptation! Remember, the shops will tempt you to buy things you don’t need.

 

Remember our five shopping secrets:

Take your own shopping bags. Never go shopping whilst you are hungry. Plan your shopping trips and stick to your plan

 

Compare prices  Be brand aware

Live Within Your Means

There’s no point buying things that you can’t afford.  Will Smith recently said: “Too many people spend money they haven’t earned, to buy things they don’t need, to impress people they don’t like” It is possible to live within your income. it takes discipline. Plan what you spend, and never buy on impulse.

 

Always Have an Emergency Fund

By keeping an emergency fund (at least one month’s salary) you’ll no longer have to go into debt when an emergency comes along.  Your peace of mind knowing you have a “back-up” plan will alleviate a lot of financial stress from

Kagiso Awuonda