Like the New Year resolutions that have become
an annual ritual,setting your financial goals early in the year is desirable if you do not want to end the year in financial misery.
People in some countries have marked 2015 as the austerity year.Especially,people in countries where oil is the mainstay of their economy.The reasons are not far-fetched.
Global oil price has crashed to about $60 per barrel,from over $120 per barrel it was before.
Simple economics tells everyone that there is fire on the mountain,that things are really going to be tough.
Beware,that in 2015, salaries will accumulate,rents will not be paid,parents will be defaulting in school fees,and the overall family budget will shrink.
With this scenario,nobody will be told to tighten his or her belt.Nobody will wait to cut coat according to size.
But,as it is,taking wise personal finance resolutions can help us come out of the woods.
Below are few things we could do to really shape up in both personal and family finances:
1.
Keep track of your expenses:
If you have been a spendthrift,this time around,try and identify those areas where you have gone overhead.These could include things like spending too much on celebrations,parties,eating out,buying fancy and luxury items,recklessness in acquiring gadgets,recharge cards,
frequent trips or even paying premiums on unwanted insurance products or wasting money on overdue penalties.
With all the above in mind and in action,it will be easier to keep good track of expenditures and savings.
2.Keep track of your debts:
While you are keeping good track of your payments(expenses) to cut down on unwanted expenditures,it is also essential to keep track of your debts.
If you have too many loans n you,like car loan,office IOU,co-operative society loan,payday loan or even personal loan,it's high time to get rid of them first and fast.However,if you are having a housing loan or mortgage still running,try to identify ways of making frequent repayments in the coming years.But always,keep in mind it is first important to do away with unsecured loans as these loans carry high interest rates which could impact your investments.
3.Educate your self:
This year,make it a point to re-educate yourself on various investment products such as stocks,landed property,fixed deposits,money market products,tax products,basics of investing and review your portfolio.Experts say you need not master it all,but basic working knowledge is definitely required.
4.Invest in small quantities:
If
you are finding it difficult to save and invest,the best way is to
start investing in small quantities.By doing so,you will easily be able
to create a corpus for the coming years.For instance,if you are keen on
saving some dollars or your local currency every month,begin now.No
amount is too small to start.Saving $300 to $500 month after month will
give you $3,600.00 to $6,000.00 in one year.Instead of waiting to gather
a lump sum amount so you can then invest,it is always better to start
with smaller amounts,by way of systematic investment plan or recurring
deposits,so that you do not waste time. Most times,when you tell people
to try to invest,the answer is always;"my salary is too small to save
from it".No matter how small your salary is,begin this time to save.You
can reduce that $500 you spend monthly on communication recharge cards
and channel the same to to savings.Below are few things we could do to really shape up in both personal and family finances:
1.
Keep track of your expenses:
If you have been a spendthrift,this time around,try and identify those areas where you have gone overhead.These could include things like spending too much on celebrations,parties,eating out,buying fancy and luxury items,recklessness in acquiring gadgets,recharge cards,
frequent trips or even paying premiums on unwanted insurance products or wasting money on overdue penalties.
With all the above in mind and in action,it will be easier to keep good track of expenditures and savings.
2.Keep track of your debts:
While you are keeping good track of your payments(expenses) to cut down on unwanted expenditures,it is also essential to keep track of your debts.
If you have too many loans n you,like car loan,office IOU,co-operative society loan,payday loan or even personal loan,it's high time to get rid of them first and fast.However,if you are having a housing loan or mortgage still running,try to identify ways of making frequent repayments in the coming years.But always,keep in mind it is first important to do away with unsecured loans as these loans carry high interest rates which could impact your investments.
3.Educate your self:
This year,make it a point to re-educate yourself on various investment products such as stocks,landed property,fixed deposits,money market products,tax products,basics of investing and review your portfolio.Experts say you need not master it all,but basic working knowledge is definitely required.
4.Invest in small quantities:
Buying traditional insurance products
is the best example of this.Premiums are paid every year on such prolicies without realizing
how low the total sum assured is
.Sadly,most investors decide to invest only at the last minute,at the end of financial year,in order to save taxes.These steps could impact your overall financial health.Hence,it's important to plan your tax investments at the beginning of the year.Choose
the right products,buy insurance and get rid of debts,so that you can then focus on fulfilling your financial goals.
If you have missed out on buying life or health insurance,do it now.It will help you and your family incase of any contingency.
By taking baby steps on your finances,you can be rest assured that your financial goals are in place,and you are well placed for the future.It's never too late-start today.
is the best example of this.Premiums are paid every year on such prolicies without realizing
how low the total sum assured is
.Sadly,most investors decide to invest only at the last minute,at the end of financial year,in order to save taxes.These steps could impact your overall financial health.Hence,it's important to plan your tax investments at the beginning of the year.Choose
the right products,buy insurance and get rid of debts,so that you can then focus on fulfilling your financial goals.
If you have missed out on buying life or health insurance,do it now.It will help you and your family incase of any contingency.
By taking baby steps on your finances,you can be rest assured that your financial goals are in place,and you are well placed for the future.It's never too late-start today.