New Year’s resolutions have been made for good reason since the beginning. They help prepare the way for what is to come and set objectives to work toward. While most people give up on their resolutions, here’s hoping you stick to them and change your life in 2023.
- Let go of the fear-
When others discuss money, many people become agitated. It is a sensitive subject that is usually swept under the rug. But what if you let go of this mindset and consider money to be your best friend rather than your foe? It is your reward for your efforts, so why be ashamed of checking your balance daily and planning how you will spend your money? Tell yourself, “You deserve to enjoy the money you make.”
- Make a Budget-
Your earnings must be budgeted so that you can keep track of every rupee saved and spent. A budget is not necessarily a wise decision but rather a necessity. How much money do you make? How much money is spent on bills that cannot be avoided? How much money do you save? The budget should not be so strict that it chokes you. Make sure your budget is flexible and that you’ve budgeted for fun.
- The mighty 50/30/20 rule-
A good budgeting tip is to follow the 50/30/20 rule, which states that 50% of your budget should go towards necessities, 20% should be saved, and 30% should go towards big-ticket items. This rule of thumb will work wonders for your money, irrespective of how much you earn.
- Study and Talk Numbers-
This point does not refer to studying finance in college and earning a degree because only that will prepare you to manage your money. Instead, it refers to being open to learning about money management from various sources, such as books or online courses. Talking about money with others will also provide insight and help you make the best decision for you.
- Insure yourself-
If the pandemic has taught us anything, it is that life can change in an instant, and it is critical to be aware of this at all times. Health and life insurance are unavoidable. Examine your life and health insurance policies in 2023. Get proper coverage for yourself and your family to avoid financial pressure as a result of medical emergencies.
- Build an emergency fund-
‘Save for a Rainy Day,’ is probably one of the most well-known idioms you learned in school. It is still true after all these years. Putting money aside can be useful not only during sickness but also if you decide to quit your job and pursue something else. The emergency fund is the safety net you absolutely require in your life.
- Power of automation-
You must have underestimated automation’s power. Automation allows you to sit back and relax while all of your bills are paid at the beginning of each month. You have one less burden to bear when your bills are paid on time. Similarly, you can automate your savings by transferring an x amount to a separate account at the beginning of each month. This ensures that whatever is left is truly yours to enjoy and relish.
- Say goodbye to unnecessary expenses-
When you sit back and consider where all of your money went that month, you’ll be surprised at how much you spend on frivolous things. A magazine subscription that you last read in years ago, or a gym membership that you last visited in two months ago, are two examples. Remove these because every rupee saved is a rupee earned.
- Death of Debt-
Get out of debt as soon as possible because it has a habit of tying you down and controlling you. Don’t ignore it because debt doesn’t just disappear; it grows slowly, creeps up on you, and then you’re confronted with an overwhelming amount of money that has accumulated in the form of debt. So, make sure 2023 is the year of death of your debt.
- Pay Quickly but Buy Slowly-
This particular tip is a lifesaver. When you choose to pay off all of your bills as soon as possible, you save yourself from the stress that could keep you awake at night. Also, choose to buy things slowly, talk to yourself, and ask yourself if you need that piece of clothing or a new pair of shoes. If you still seem to romanticise it after a month, go for it.
Choose wisely because your money must last a lifetime. May this be the year that you get your finances in order. Take charge, be accountable, and show up daily for your money because you deserve to live the life you imagine.
