The past 12 months have been a challenging time for many, filled with interest rate rises and a cost of living crisis. It might feel like your financial progress has been on hold or, unfortunately, taken a step backward.
For many of us, the financial goals we set last year have veered off course due to various reasons. Considering the current circumstances, you might be questioning the worth of setting new financial goals.
Even if your financial goals faced challenges this year — or if you're contemplating, "What financial goals?" — don't feel compelled to completely reset your money habits. Instead, ease the pressure a bit and consider adopting any of these modest financial New Year's resolutions. You might be surprised at the significant impact they can have in reducing your daily money-related stress.
1... Make a Budget that works for you
Developing a budget is the cornerstone of financial success. By meticulously tracking your income and expenses, you gain a clearer understanding of your financial landscape, enabling better decision-making and savings planning. But its important to make your budget work in real life – there is no point putting together a budget impossible to stick to, it just leads to disappointment. So, make it realistic!
2... Set smart money goals
Define specific savings goals, such as a holiday, an investment property, or putting more money into super for your retirement. Having clear objectives helps structure your savings plan and motivates consistent contributions.
3... Wrap your head around debt reduction
Pledge to tackle high-interest debts strategically. Whether through snowball or avalanche methods, committing to a debt reduction plan helps alleviate financial stress and accelerates the journey towards financial freedom.
4... Build an emergency fund
A robust emergency fund acts as a financial safety net, providing peace of mind during unexpected situations. Resolve to save a specific amount each month to gradually build or reinforce this essential fund.
5... Review and adjust insurance policies
Regularly assess your insurance policies to ensure they align with your current needs. Adequate coverage provides financial protection and can be adjusted as circumstances change.
6... Establish or update a Will
A will is a crucial aspect of comprehensive financial planning. Ensure your wishes are documented and updated as needed, providing clarity and security for your loved ones.
