The New Year is knocking at the door and it is the right time to make financial resolutions. It is time to learn from the past mistakes, and set new objectives for the next 365 days. Make sure you make such resolutions which are achievable. Otherwise, you'll not be able to fulfill them, just like the other years. Glance through the article to know about the 5 financial resolutions you can make in the New Year. Know about the steps which can assist you accomplish your resolutions.
Make financial resolutions and fulfill them in 2012
Here are some financial resolutions which you can make in the year 2012. Find out the resolutions and the steps you may take to achieve them.
Resolution 1: Build up a financial cushion for emergencies.
Step: You need to work hard for achieving this financial resolution. You won't be able to build up an emergency fund by saving money for around 4-5 months. The fund will not be adequate for you, especially in the current economic state where there is no job stability. You need to save an amount which will help you meet your family expenses during the period of prolonged unemployment. Start saving from the first day of 2012, and build up your emergency fund slowly. Continue the process throughout the year. You may never know when it comes to your rescue.
Resolution 2: Get out of debt and lead a prosperous life.
Step: Take steps to ditch your debts by December 2012. It will help you have a fresh financial start in 2013. You can use the money which you used to spend to pay off your debts for saving purpose. You can also invest the money to build your financial health.
Follow debt snowball or avalanche method to pay off your debts. These methods will help you get out of debt without enrolling into the professional debt relief programs. You won’t have to pay professional fees to the debt relief companies.
You can also apply the debt snowflake method, which is not as popular as the previous 2 methods. In this method, you contribute all the extra funds toward paying off your debt. If you receive any financial windfall, you can use it to repay your debts.
Resolution 3 – Raise your cash-flow by the end of 2012.
Step: No matter what the condition of the market is, you should aim to increase your income in 2012. You don’t have to live poor just because the economy of the country is not in a good condition. You have full right to live rich.
Ask your boss to give you a pay rise. If you’re not getting what you deserve, then start looking for other jobs. Don’t submit the resignation letter without getting another job. Other than the traditional jobs, you can try for the online ones. You can start freelancing or set up a side business with your friend. If God forbid, you lose your present job, then there won’t be any dearth of money.
Resolution 4 – You are adequately covered for the unfortunate incidents.
Step: Accidents can happen anytime. You may break a leg and be without a job for several months or your house may be damaged by a fire. So, it is better to be adequately covered for the unforeseen calamities. Purchase multiple insurance policies from your insurer. Make sure you have the right amount of coverage. For instance: you can purchase life insurance if you’re the only earning member of the family. This way, your family will not come on the road when you’re no longer in this world.
Resolution 5 - You'll have the perfect credit score finally.
Step: You'll have to apply certain strategies to achieve the perfect credit score. For instance, you’ll have to avoid applying for several credit cards within a short span of time. Other than that, you need to pay your bills on time, stay within your credit limit, lower your credit utilization ratio, and erase bad information from your credit report.
Choose any of the aforementioned financial resolutions. Don’t try to make multiple financial resolutions on the New Year. You may not be able to fulfill all the resolutions in one year. Select one resolution and do your best to achieve it.