It’s that time of the year when you make your Financial New Year’s Resolution list. Already started? If yes, make sure that your resolutions prioritise every aspect of your life, including your finances. If you haven’t done this before, you can start by making a resolution to save money.
Now, saving doesn’t come naturally to most people. So naturally, getting started can feel extremely difficult, given it involves making drastic changes to your current financial habits and making different lifestyle choices. But the truth is, all you need is a list of smaller, achievable financial goals to get on track.
Wondering what financial goals you should have and how should you work towards them? Well, here are five Financial New Year’s Resolution to help you do just that.
Clear Your Credit Card Dues
If you have uncleared credit card debts, the first thing you must do is pay them off. The reason? Credit card debts quickly become a sink for your savings due to the late payment dues and interest you need to pay on them. Chipping away these dues can reduce your debt burden drastically.
So, start your New Year by clearing your dues. One great way to do this is to set up auto-pay on your credit card. By doing this, the money will be directly debited from your savings account to clear off any outstanding credit card dues.
To save money, you must first know where you’re spending it. And one sure shot way to understand your savings and spendings is to create a budget. The best place to start is to segregate your spendings into various buckets, such as bill payments, monthly expenses, debt repayments, and recreational activities. Next, allocate funds to each of these areas every month.
Now comes the hard part – actually sticking to your plan. You need to exercise all your restraint and stick to your prepared budget right from the get-go. Over time, you’ll grow comfortable with the financial routine you’ve developed, making saving a lot easier.
If you’ve already made a budget, you have a clear idea of where your money is going. All you need to do is cut back on the non-essentials. This can be as easy as reducing the number of meals you have at a restaurant, spending less on shopping, or reducing the number of times you travel in a month, etc. Naturally, when your expenses reduce, your savings increase proportionately.
The economic instability brought on by the pandemic has been a financial wake-up call for all of us. In fact, many people have started building emergency funds to prepare for the unexpected. If you don’t have an emergency fund yet, it’s high time that you start building one.
You can easily do this by opening a separate savings account and depositing a fixed amount every month. Doing so consistently can build a significant cash reserve, which you can access easily during any emergency. The best part? You also earn interest on your savings, allowing you to grow your funds.
Retirement may be a long time away, but the best time to start a retirement fund is right away. Why? Because you need a large cash reserve to sustain you through the third innings of your life. By having a large enough cash reserve, you can continue enjoying your current lifestyle even then without any hassles.
Choose a financial tool like government bonds or designated retirement funds to build your retirement fund based on your needs and current abilities. And if you want a simple fuss-free financial tool, you can always opt for a savings account.
Whether you start your new year by chalking out a budget or building your emergency fund, you have a fuss-free, low-risk financial tool to support it – a savings account!
What’s more, with IndusInd Bank’s bespoke services, you can set one up easily online. And that’s not all, you can manage your account online, from the comfort of your own home! Visit their website to learn more about their offerings.