2019 is the year to start your financial management afresh
We have finally stepped into a new year, and like always, it’s the time to list out resolutions and incorporate them into your daily life. Some people think that resolutions are meaningless because they can never adhere to them. The moment you think about quitting a bad habit, the urge to do it for the one last time creeps in. The worst- you do it finally, making all the planning go in vain.
This is no different when it comes to managing your finances. No matter how much you think you won’t overspend, you always surrender to your tendencies. So, should 2019 be the same for you? It doesn’t have to if you are clear about what you wish to achieve. This is a year to start afresh with much stronger willpower to stick to all your goals and resolutions.
Dominique Grubisa, who’s a well-known solicitor, real estate professional and an advisor, throws some light on the different tactics that people can use to stabilise their financial position. It’s all about setting straight goals and sticking dedicatedly to a course of action. If you wish to make this year financially rewarding, here is a rundown of the various goals you should set:
- Getting out of the loop debt
Borrowing money can save your neck in times your need, but it shouldn’t become a habit. Businesses do run on credit transactions, but as far as your personal finances are concerned, having too much debt can be a huge mental burden. 2019 is the year to get out of your debt loop. Clearing off your past debts is something you should aim at this year. As a perk, you even can look at other career alternatives as you will worry less about quitting the job you dislike.
- Building an emergency reserve
Clearing off your debts would be great as you can start your books anew. But that doesn’t eliminate future contingencies that might require huge financial commitments. You never know what life has in store for you. Loss of your job, health issues in the family or a major expense can drain you of your valuable resources. If you lack finances to meet a contingency, probably, you will fall into the debt trap again. So, it’s always smart to build an emergency fund, a reserve from which you can withdraw money when needed.
- Budgeting everything
Have you been splurging your hard-earned money on things that don’t really matter? We all tend to do so, but let’s try changing this pattern in 2019. It’s the year when you should take some time out to categorise all your expenses. If a majority of your expenses is on rent, car or interests and minority in fancy lattes and luxury brands, perhaps you are on the right track. An excellent way to budget is following the 50/20/30 rule, where 50% of your income goes to your essential expenses, 20% goes to paying off debts, increasing savings and other goals and 30% is flexible.
- Boosting your credit score
Most people don’t pay much importance to their credit score, but it matters a lot. You may be thinking that improving your credit score is a tough job. But, in reality, it’s easier than you think. Your credit score is the primary factor that determines your eligibility for a loan, be it business, housing or automobile loans. It signifies your creditworthiness and your ability to meet your debts. You can increase your credit score by paying off a chunk of your debts or joining an existing account of another card holder, and ensuring your records are accurate and up-to-date.
- Saving on utilities
A big drain on your bank account is your monthly utility bills. At the same time, you can’t help but have them because they make your life so much easier. Electricity, water and cable TV are something no modern household can do away with. So, won’t it be smart to save on these bills? The good news is you can save whopping sums of money annually if you use the utilities judiciously. Switching to energy-efficient lighting and reducing water usage can be an excellent way to save on these expenses. At the same time, you go green by doing so, which translates into valuable environmental gains.
The above are few of the goals that Dominique Grubisa urges everyone to set this year. It’s all about being smart with your money, using it in the right place at the right time.