We just celebrated the arrival of 2019. You look back to 2018 and review how things went with regards to family relationships, jobs, and health. But it is also a period of reckoning in an important aspect of everyday living – personal finances. Has the year been rewarding to you or were you financially drained?
Whether you are well-off or broke, you need to take stock of the situation and prepare for the year ahead. The New Year brings a whole new promise for those seeking prosperity and financial freedom. Setting financial goals is a must if you are to endure the next 365 days without money problems and difficulties.
5 ways to achieve your financial goal in 2019
You increase the chances of achieving whatever financial goals you have set if you have a complete game plan. Here are 5 ways to be prosperous and be free of financial worries in 2019:
1. Prepare a new budget
If you didn’t have a budget in 2018, it’s high time you make one today. In case you had one, revisit your budget to see if you’ve done better or worse. Having a budget allows you to set limits while controlling spending.
Sometimes, the financially challenged are richer than their affluent counterparts by year’s end. You might be earning more than the average income earners yet you start each year financially strapped. Such a situation shows poor handling of finances and lack of financial discipline.
Unless you get smart and strictly monitor your budget, the coming year might not be not as good as the passing year. Remember to spend only up to the extent your money can afford.
2. Pay down your debts
Debts and loan obligations are the usual causes of financial misery. Remove the chains of debt by making a firm resolve to get rid of them. The sooner you pay down your debts, the nearer you are to financial freedom.
The number one goal is to restrict the use of your credit cards to prevent debt accumulation. As your loan balances shrink, you double down your interest expense.
One way to fast track loan repayment is to obtain a personal loan to consolidate all your debts. If you can negotiate a loan with a lower interest rate than the average rate of all your outstanding loans, pursue it.
3. Make saving a habit
Borrowing can be habit forming but saving can be as well but in a more productive way. It’s never too late to start saving. With a fresh budget to work around and a plan to retire debts, you can set aside a portion of your income for savings.
There are plenty of ways to jumpstart this exercise. Any amount you can add to your disposable income can go directly to savings. But it demands sacrifice on your part to make it rewarding.
Begin cutting down on your buying or eating sprees and avoid useless spending. Be conscious of your grocery shopping and economize on your utilities. Once this short-term practice becomes habitual, you’re on track to achieve the bigger and long-term financial objectives.
4. Learn the best practices in managing money
Learning to handle money and personal finances is important regardless of your financial status in life. You can follow the footsteps of people who can grow their savings and clean up debts despite the limited financial capacity and lower income.
If you are similarly situated, all the more you need to avoid being reckless with your money. There are plenty of books and online resources that can help you sharpen your financial intelligence.
5. Think investment
Once your financial plan is underway and you have better control of your finances, think about investments. Never lose the thought that 2019 might be the year you’ll have the seed capital to look for investment opportunities.
Investing allows you to grow your money at a faster pace. However, the risks are higher if you lack the skills to do it yourself. Newbie investors can consult or engage the services of financial advisors or wealth managers. What is important is that you’re taking positive steps to make your savings work for you.
A financial goal for the New Year and beyond
The financial goal you set today should safeguard your financial well-being not only in 2019 but beyond. Make it detailed in all aspects of spending and savings. Be sure the plan is feasible and progress is measurable. Keep it realistic not ambitious and leave room for flexibility in case you need to adjust.
There’s no better approach to face the New Year than having the financial maturity to see through your financial goal. A great number of like-minded individuals have succeeded and so can you.
This article is prepared by Direct Lending – a fast, simple and safe online personal loan platform for civil servants and private workers in Malaysia