Whether or not you’re the sort of individual who sees the beginning of January as the time to set yourself resolutions and stick to them, the period after the extravagances of Christmas and New Year is perhaps one of the best times to actively get your finances into shape. Here are five excellent money-related resolutions it’s certainly worth devoting time to in order to make 2018 the year you take control of your finances!
1. Manage your debt
Freeing yourself from debt can seem a long way off if you don’t devise strategies for how you’re going to become debt-free. There are no shortcuts—it takes both time and sacrifice—but once you do manage to become free from debt completely, it’s a liberating sensation and opens up many more chances to help you grow some savings.
2. Expand your financial knowledge
This can be as easy as finding a trustworthy website, magazine or book and setting aside a little time each week to growing your financial know-how. Anyone who has financial well-being hasn’t done it through luck, but by way of understanding what to do with their money, so the more you pick up the more secure your finances are likely to be.
3. Start a budget
The secret to financial security and peace of mind isn’t making lots of money, but prudently managing the money you have. A budget is the best way to start doing this, guaranteeing you know where your money is going and sticking to the plan you design for yourself. It can feel daunting at first if you’ve never budgeted before, but it will undoubtedly help you to cut out overspending and reduce your money worries.
4. Start saving regularly
Once you’ve got your spending and debts on a tight rein, growing your savings is crucial. You should aim to save a minimum of 10% of what you earn every month. You may have to make some sacrifices in order to do this, but when you have those savings earning you money in your nest egg, foregoing the occasional night out or frivolous indulgence will feel very worthwhile.
5. Start investing
Making some sound investments is often the decisive step from financial security to prosperity and success. However, you should only invest when you’re ready (i.e. once you’ve accomplished the previous four goals). It’s worth getting good independent financial advice also to ensure you make the right investments for your personal circumstances.
Please remember the value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investment should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
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