New Year’s Resolutions For Your Pocket

Jan 5, 2017 Blog  Financial freedom

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As a new year begins, personal resolutions are always top of mind, however financial resolutions are just as important.

Here are some guidelines on where you can focus your attention:

Focus on paying off your consumer debt: credit cards have high interest rates and paying these off can free up cash for the future. Learning to live within your own financial means can assist you on the road to financial independence.

Build an emergency reserve: a minimum of 10% of your earnings should go into long term savings, however an additional 20% should go into an emergency reserve. This will assist you with unforeseen outlays of things such as home improvements or medical bills.

Increase retirement savings: you might be used to paying for a retirement savings by now, it might even be subtracted directly from your pay before it even gets to you. The problem with this though, is that you never think to increase your retirement savings. Ask your employer if you are able to have an automatic increase in this.

Create your will: most people don’t realise that your will isn’t only what happens once you have passed, but it also impacts what happens whilst you are still alive. You might need somebody to make medical decisions on your behalf or your wishes concerning life-prolonging procedures. A will is beneficial for everybody involved.

This piece was based on an article published in the Investopedia which you can read here.

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