Recommend a Resolution…’s 8 ideas

Any time of the year is a good time to improve your bank balance. The beginning of the year is when many people make resolutions to live a healthy lifestyle.

Any time of the year is a good time to improve your bank balance. The beginning of the year is when many people make resolutions to live a healthy lifestyle. While these resolutions are great in themselves, you should also consider your financial health. How about concentrating on your personal finance’s and making financial resolutions now?

Making, and sticking, to these resolutions will help you feel better! Here are eight possible resolutions to help you get started……

1. Begin Saving

We all have heard this phrase “mighty oaks from little acorns grow”. When it comes to your financial life, small savings can help you create a great portfolio in the future. Do something that makes you save a little, for example, consider starting a monthly savings plan and set up a direct debit from one of your bank accounts.

2. Have an Emergency Fund

Apart from saving every month, have an emergency fund that you can use in case of an unexpected financial crisis. Having an emergency fund will give you the reassurance that you don’t need to break into your savings when you need money unexpectedly.

3. Review your Retirement Fund

You may think you are way too young to be talking about retirement but planning for it early will help you retire confidently (and probably a little sooner!). It is also worth noting that you can get tax relief on pension contributions, so a pension is not only a great way to save but it may also reduce your annual tax liability.

4. Is Your Insurance Coverage Adequate

In most cases, people get into financial crisis when unforeseen circumstances affect income and they don’t have adequate insurance cover to meet this shortfall. As you enter a new year with positivity and hope of good times are ahead, stay fully prepared. If you were forced to stop working due to ill health, do you have sufficient cover in place to provide for you and your family?

5. Have a Budget

You should always be aware of how much you are spending. Every month set aside money required to pay your bills and other expenses and transfer the remaining to your savings account. This will make you financially disciplined and help you save.

6. Reduce Debt

Take some time to sit down and make a list of all your debt. Start by clearing off the small debts first. This way, you will be motivated to pay off more. Also, consider the interest rate you are paying when deciding which debt to pay off first, whether it is clearing your credit card bill or closing a personal loan.

7. Think before you use your Credit Card

Simply put, when used right, a credit card can be invaluable. However before swiping your card, ask yourself if you will be able to repay the entire amount before the due date. If your answer is yes, go for it. If you pay your bill in full and on time every month, you won’t pay any interest on purchases. Remember, interest is charged on your outstanding balance and every cash advance. So, avoid any cash withdrawals on your credit card. Also, remember paying the minimum payment won’t help you clear your outstanding balance.

8. Close Unnecessary Bank Accounts

As long as your account is active, the bank may continue to charge fees and interest. New Year is all about letting go of the past, taking right decisions, and looking forward, why don’t you start by closing all unnecessary bank accounts that you no longer use.

So, prioritise your financial resolutions this New Year; they may be easier to keep than you think and the rewards more fruitful.

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Written by Pat Leahy, Certified Financial Planner

Published 2019-10-14

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