Financial resolutions worth making in 2015
It’s a new year and many of us are making resolutions – again. Here at CPG we have just celebrated our 6 year anniversary and every year we see the top 3 financial resolutions our clients make include saving more, spending less and reducing debt.
Many resolutions seem to get broken throughout the year but it is logical that those who set out with goals to improve their finances at the start of the year will realise more of their goals by the end and will generally be better off financially.
Here are our top resolutions to make and keep for 2015:
1) Track spending and make a budget
It might sound obvious but checking the status of your savings and evaluating your monthly expenses is key to managing your cash flow and creating a budget that you can actually stick to.
If you are spending more than you make then how can you reach your financial goals? Make sure you include a fixed amount for discretionary expenses – a budget is only as a good as how well you can stick to it.
2) Open a savings account and close accounts you don’t need
Just like tax is taken out of your wages (if you’re an employee), pay yourself first in a separate savings account. If it’s not there – you can’t spent it and these types of savings accounts usually offer better interest rates as well.
And while you’re opening a new savings account, it’s the perfect time to close accounts you don’t need and save money on bank fees and charges – those few $ every month can add up to hundreds quickly.
3) Create a pay down debt strategy
If you have a lot of bad debt, you will probably save more by paying this down first than investing. Start with high interest loans first and pay more than the minimum payments. I have seen many clients become debt free very quickly using this strategy.
If you want to learn something new -research, read and source experts in that area. For example if you want to cook you read cookbooks and attend cooking classes. If financial resolutions are a priority for you this year commit to perhaps reading a financial book or attending an investment seminar once a month.
Applying yourself on a consistent basis to learn more is essential to creating wealth.
(note: I will be doing a blog on my top ten property, investing and mindset books very soon!)
No matter what your financial goal, whether paying down debt or saving for retirement – making a financial commitment will help you reach your goals quicker. The key to sticking to your resolutions is to Take Action, track your progress and check it often.
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