Don’t wait until 2016 to make your financial resolutions

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By: tiarajoseph11
on 29th Dec,2015

Let’s find out what resolutions we must take in this year 2016 for our prosperous future.

Like any other year, a major part of our population, may be less than ⅓ of the total may take the initiative to plan their financial resolution for the coming new year 2016. Planning one financial resolution is easier than making some common resolutions like buying a car or losing weight. But if you think wisely, make proper resolutions, and follow them perfectly, you can surely get benefitted by improving your financial life.

For 2016, let's look at few of the most effective resolutions from the experts:

1. Work on emergency funds

Many financial planners ask you to save for minimum 3 to 6 months each year. The more you save, the greater will be your benefit. A sudden trip to any urgent surgery or home repair can easily cost you thousands, and in this situation, a job loss can be devastating. Hide a portion of money you earn and keep it away from you, make sure to save it for an online savings account.

2. Create an income from various resources

If you have a steady job, then use your hobby or knowledge to earn more through freelance jobs. Sell your extra stuff on eBay (EBAY) or other e-commerce websites. But don't neglect what you do in full time, give your best always.

3. Have a chat

Most of us have a big problem with chatting. Rather than discussing global economy or any other boring subject, have a chat with your family members about their financial problems. It’s often seen that families usually don’t have much inter-generational talks about finances. This resolution is also highly recommended for young couples/newlyweds and parents.

4. Ramp up your saving

If you have low debts and also an emergency fund, you can go for this option. If you’re getting employer aided retirement contributions, get the money and check for high-yield financing plans. You can set up an automatic monthly deduction, which will invest your savings towards those plans like “individual retirement accounts” or other savings plans having tax-advantages.

5. Organize the records

Organize your tax files early. Use financial apps like Mint and keep all the records up-to-date. It’ll help you to maintain a good financial track with daily spending. By keeping regular records, you are actually helping yourself to budget and manage the extra costs professionally.

6. Reduce costs and extra expenses

Check out your regular bills of exchange. Verify every check, bill, and keep a track of daily spending. Stop overpaying and check insurance payment details. Get an energy audit and reduce power bills.

7. Invest in yourself

Take special classes and enhance your merit to get a better job. Education is an intangible asset, which can’t be taken from you. Learn about stocks and bonds to invest wisely. The more you’ll learn, the more you can manage your finances better.

8. Pay off your debt

It’ll be difficult, but try to pay off debts faster and completely. The faster you'll get out of debts, the more your credit score will grow. Choose bigger accounts with higher interest rates to pay off first. You can easily pay a big amount to cut off the principal, you just need to inform the creditor prior sending the payment. Never try to pay only the minimum balance on any credit cards.

This year, make a resolution to resolve your debts within a definite time. Know about DIY debt resolution strategies with professional help.

9. Do it simply

Set up automatic bill payment option, automatic withdrawals or deductions. It’ll help you to get your prime financial goals. Use financial programs after taking advice from your family or elders. Try to convey these effective financial tips to kids and make their future strong.

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