You have stepped into 2020, and now is a perfect time to make resolutions. Many people aspire to trim down, give up smoking, stop putting off, improve skills, manage stress, develop reading habits, and get more quality sleep when New Year comes. You have moved from ’19 to ’20, so why not try new things?
Money is the biggest concern around the world, so why not the New Year resolutions should be around money?
The beginning of the year provides you with an opportunity to decide what you need to do with your money, and it will shape your behaviour. New Year resolutions mean the time for removing your flaws and bad habits and giving you another chance of making a better life. If you stick to your financial decisions, you will end up in a better place.
Here are the top financial resolutions you must make for 2020.
1. Do not put off debt payments
Be a responsible citizen of the country. You have borrowed money, so you need to pay it off on time. Promise yourself that you will not miss any repayment. Do not ignore payments of utility bills too. If you have multiple debts, prioritise high-interest debt payments. Consider advanced payments and negotiating with your lenders.
If you do not have any current debt to pay off, you cannot be carefree. You will likely need to borrow money down the line. Use online calculators to see the total cost of the loan and evaluate whether you could repay it.
2. Avoid cash advances as much as possible
Cash advances carry very high-interest rates. Even though you need money urgently, try to apply for a loan. No guarantor loans, bad credit loans are a few alternatives that allow you to borrow money the same day when you put in the application.
3. Get a high-paid job
Sometimes you get so caught up in spending less and saving more that you forget to consider the other side of the situation, which is how much you earn. Low income is one of the significant reasons for being unable to meet expenses. Try to find a better job that will give some more room for your budget.
4. Build emergency cushion
Emergency cushion helps you fund unexpected expenditure without borrowing money. No matter how much you earn, develop a habit of setting aside money. Keep adding money to your emergency cushion.
5. Monitor your credit score
Sign up for free credit monitoring. To get a loan at a lower interest rate, you must have good credit standing. Be familiar with the content of your credit report. Regular observing your credit score will prevent you from becoming the victim of identity theft and other issues.
6. Reduce your medical cost
Your physical and mental health has a direct connection with your money. Eat healthily and exercise daily. The more you stay physically fit, the lower the medical expenses will be. Practise yoga and meditation. Keep your body active. You do not need to get in rigorous exercises. Even a small change in your diet can whittle down your medical expenses.
7. Contribute to a private pension scheme
If your employer does not have a pension scheme, start contributing to a private pension scheme. This contribution will make your life easier during your old age.
8. Use apps
Various apps like Mint, YNAB help with budgeting, saving, investing and tracking spending. These easy-to-use apps will take a lot of financial burden off your head and get you on the track.
9. Improve your credit score
In 2020, you should make ways to build your credit score. It would be best if you show a lender that you consistently pay off your dues on time. Remember that small loans with lump-sum payments do not contribute to your credit report. Prefer instalment loans. Timely payments over an extended period prove your credibility.
10. Eat home-based meal
Eating out each week can take a large chunk out of your money. A home-cooked meal is healthier, tastier and affordable. The money you save on restaurant food can be utilised in other areas.
Which of these actions will you resolve this year? Whatever resolution you make for 2020, make sure that you get succeed.