TOP 5 FINANCIAL RESOLUTIONS TO MAKE AND KEEP IN THE NEW YEAR.
New Year comes with new resolution. It’s a great time to take a different approach by creating financial resolutions and setting yourself up for success. Here are 5 great financial resolutions that make for 2020 to improve your finances and overhaul your life for the better:
1. RESOLVE TO BE DEBT FREE. PAY AS LOW INTEREST POSSIBLE.
Before you enter into any fresh investment, ensure that you have no ongoing liabilities like pending credit card bills or outstanding personal loan because there is no point of giving 42% interest on credit card dues and over 14% on personal loans. Identify what you can eliminate.
2. BUDGET YOUR EXPENSE AND STICK TO IT.
You never know where your money goes every month until you record your expense on a worksheet. If your goal is to spend less on a regular basis, get yourself on a budget that will help you to identify areas where you can cut back.
3. START PLANNING FOR THE HOLIDAY – NOW.
This is also a good time to think and plan for your annual holiday trip and make its budget in advance. You can have an emergency saving fund or consider putting a fixed amount in your savings account at the bank weekly or monthly for atlest 3 to 6 months.
4. FOLLOW A 50/30/20 RULE OF FINANCIAL PLANNING
This is a popular rule for breaking down your budget. The 50-30-20 rule puts 50% of your income toward necessities, like housing and bills. 30% of your income can be allocated to wants, like dining or entertainment. Finally, twenty percent should then go towards financial goals, like investing or saving for retirement.
5. DIVERSIFY YOUR PORTFOLIO AND TIMELY REVIEW
The return of your investment portfolio is primarily determined by the Asset Allocation. A simple way to diversified portfolio is to invest in a pre mixed asset allocation fund. For example, if you have heavily invested in equities and the market is not at its best, then revising your portfolio may help you bring the much needed change.
It is important to have a clear picture of your finances and create a financial plan accordingly. Download the Stoxkart App and invest in equities or mutual funds online to achieve your financial goals.