Realistic Resolutions for the New Year

If you're like me, you've probably made a few shoot-for-the-moon new year's resolutions over the years.

But I've found out that small changes can get big results over time, and that they have a much better chance of sticking instead of fading away as the year goes by.

And today, we've got Bwayan Jordison to share his thoughts on this.

Every year, many of us make the conscious decision to improve our financial status: a new year, a new lifestyle. However, how many of us actually follow through with our resolutions the whole year round? The problem with a lot of these financial New Year’s resolutions is that they are often too ambitious.

The key to having resolutions that are actually possible to follow is to break them down and simplify them. Having an ambitious end goal is okay, but you have to start with the basics. Here are a few very simple, very realistic financial goals you need to make for the New Year

1.    State your goals

Want to have a new car or successful new business by the end of the year? How about something simpler like investing in your first mutual fund?

Whatever the case, it’s important to have concrete goals set, if nothing else but for motivation. Many people start out the year with very abstract goals (or even no goals whatsoever). More often than not, these kinds of plans fail because of a lack of vision.

2.    Save, save, save!

One of the more popular New Year’s resolutions making the rounds of social media is the 52 week Challenge, which consists of saving increasing amounts of money – from P50 to P2600 – over a 52 week period.

I think this is a very practical way to turn saving into a habit. It starts off easy, and builds up over time, making the transition easier. It doesn’t have to follow the exact format: you can do it with smaller amounts. The money saved is just a bonus, but the habit will hopefully stick around.

3.    Be aware of how much you’re spending…

Most people aren’t aware of how much they spend every day. You might be surprised if you took the time to calculate how much you spend on small things like soft drinks and cigarettes, all of which add up to quite a large amount over time.

4.    … And reduce it.

Once you become aware of where exactly your money goes, you can cut out the non-essential portions.

5.    Create an emergency fund

That money you’ve been saving? Don’t spend all of it. Put aside a part of it for use on a rainy day. Because you’ll never know when you might need it, and it’s always better to be on the safe side. This emergency fund should be enough to allow you to pay the bills for a few months.

6.    Increase your income

What if you really, REALLY want that car, but you’re salary just can’t pay for it? Either you get lucky with the lottery or you increase your income. Increasing your income doesn’t necessarily mean that you leave your current job for a higher paying career, you can also leverage your skills into sideline work. If you’re working as a graphic artist for example, you can try to offer freelance services for small clients.

7.    Pay it forward

Take the time to share your blessings by contributing to worthwhile causes. It doesn’t have to be monetary either – you can volunteer manpower or knowledge. Success shouldn’t be a one way street. Unfortunately, many people forget this part when it comes to New Year’s resolutions.

So take the time to improve yourself with these simple changes. By the end of the year, you and your wallet will be better off for it.
About the Author:

Bwayan Jordison is a gamer, toy collector and a forex trader at Metisetrade Inc.. He often writes articles to help and educate everyone about the foreign exchange market

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