Tuesday, December 31, 2013

5 Practical Financial Resolutions for 2014

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Did you achieve your financial goals in 2013?

With New Year's Eve are you resolving to do more to improve your financial situation in 2014?

 the top 5 resolutions over the years has been

1. Reaching a savings goal 
2. Saving and investing more 
3. Having an up-to-date will 
4. Maintaining an emergency fund (fruit on the sideboard! )
5. Getting a new job or a better job with higher pay 

When it comes to setting resolutions, keep in mind that financial toughness is a marathon, not a sprint, 

Just as you don't hit a fitness goal on day one, ( believe me, I know) you aren't likely to hit a financial goal on the first day either. 

Even small changes, though, can add up to big results in the end.

Taking it one step at a time will help you build good financial habits that are sustainable through the good and not-so-good times.

We all stumble--at least I do! -- the key is to regain our balance and keep moving, rather than let that misstep derail us for weeks, months, or years.

As you create your financial goals -let them be SMART

Smart, Measurable, Achievable, Realistic and have a Timeframe 

For example,

 if you want to cut back on expenses, but be specific about how much you want to cut back and how you are going to accomplish that, such as making your lunch 3 days a week, taking public transport on Thursday and Friday, review your insurances , cut back on Foxtel etc. 

If you want to save :-

Set up an investment account - invest 50 per week in your investment portfolio , and arrange for a margin loan for a further 50 per week ( take advantage of leverage )

Make an appointment with your financial planner to set up your will

Prepare a detailed budget

I find that sharing your goals with family and friends will not only encourage you to stay on track, but also give you a support system to help you achieve your goals.

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