5 financial resolutions to kick off this new year

The start of a new year is a great time to set goals for you and your family, especially related to your finances. You can set a goal that's specific to you or you might set it as part of an overall goal to improve your financial health. You might be setting goals to start a business, save for a vacation, plan for your children's education, Retirement corpus or even buy a house. With a little bit of planning and discipline, you can achieve financial freedom and stability early in life. However, it's easy to lose track of financial goals as the year progresses, which is why it's important to have a plan in place. 

Here are 5 financial resolutions to kick off the new year and help you meet your financial goals. 

1.Review monthly Expenses

Start the year by reviewing your monthly expenses. Write all your monthly incomes (salary, business, etc.) and each daily expense. Use a jointly shared Google spreadsheet between your family members and keep it in Google Drive. This way, you will be able to track your expenses very easily and set priorities for future financial goals and monthly investments needed for it. After assessing your monthly expenses you must try to reduce these expenses. 

2.Invest money for the future & Start saving now.

Start investing early as only saving will not help you beat inflation. Invest in different assets and diversify your portfolio. Proper Asset allocation is important. To not lose track,  automate your investment process. Use mediums such as Systematic investment plans (SIP). Direct equity or Mutual funds have the potential to give you higher returns compared to other investment avenues. Also, check different tax-saving investments.

3.Build an Emergency Fund

You should have sufficient funds kept aside for emergencies. An emergency fund helps you avoid having to liquidate your long-term investments. Keeping aside an emergency fund of five to six months of living expenses is known to be safe and also in safe liquid assets.

4.Assess & plan to get out of debt.

Review your different debts, such as Credit card bills, home loans, personal loans, etc. It is good if you are already managing your debt smartly, consider taking steps to reduce it further. Target high-interest-rate debt first. Reducing the number of loans you carry can help you simplify your financial life. Pay your credit card bills on time. Try not to buy anything with a Credit card, and Prioritize your shopping needs.

5.Secure your family with insurance cover

You and your family are one unfortunate emergency away from a financial crisis that's why adequate insurance coverage is very important. Purchase an insurance policy to protect your assets in an unanticipated event or death. Types of insurance coverage include mainly life & health coverage. Buy a pure Term insurance plan to secure your family. Buy this as early as possible to have a super low premium. Even if you already have health insurance from your employee, it is always advisable to buy separate family floater health insurance. Employee health insurance is generally not customized to your needs.

By setting these financial resolutions and following through with them, you can work towards achieving financial freedom and stability. Remember to keep track of your expenses regularly and make adjustments to your plan as needed. 

In this article, we have covered the most important resolutions that you can consider for your financial well-being in the new year. However, if you are looking for more in-depth information and tips on how to achieve financial goals, check out our blog for more articles and resources.