Another new year, another new set of resolutions!
As much as holidays are festive and fun, it is also one of the most costly season of the year. It involves a lot of Christmas parties, reunions, gift giving, and Aguinaldo; and we all know how expensive it all could be. Some of you might have maxed up your savings or their 13th month just to finance all the celebrations you had last holiday season. That's why it is time to start the year right and set your financial resolution for the new year.
Financial Resolution Meaning
Financial resolutions are just any kind of resolutions that you promise yourself to do at the start of the year, except this one focuses more on your financial goals. It could revolve around saving money in the new year, paying your debt, or saving money to invest in a condo for sale in the Philippines.
Whatever it is, the only important thing is that you keep that promise to yourself to achieve these goals.
Here are some ideas of Financial Resolutions for the New Year
1. Build New Year's Savings Plan
Probably one of the most common financial resolutions that anyone could think of is saving goals. But to make it a little bit more different, why not build a New Year's saving plan?
Having a detailed plan on how you will going to save a specific amount of money will help you a lot in achieving your goal. Instead of only just telling yourself to save, for example, Php 50,000 for this year, you can draft a budget on how you are going to do that.
You can start by identifying how much money you want to save, the purpose of saving this money, and then calculate your income and expenses to see how much you can, and you should save to achieve the goal. In this way, you help yourself to set a realistic goal and a clear road map towards achieving that goal.
2. Pay off your Debts
As you set fresh savings goals for the New Year, such as how much you want to contribute to your children's college fund, your retirement nest egg, or the down payment on a condo for sale in the Philippines. You should also adjust the amount you want to pay each month toward your home mortgage, debts, and personal loans.
Think about increasing your monthly principle payment on your mortgage. By doing this, you'll shorten the time it takes to pay off your mortgage and earn a risk-free return on that money equivalent to your mortgage interest rate. However, if you have to pick between increasing your retirement savings and making additional mortgage payments, it is still best to speak with a financial counselor to find out which choice is best for you.
3. Make more time building your Financial Literacy
Here's something that doesn't involve much money but would require you to invest more of your time. Financial Literacy is something that anyone, especially those who are in their 20s, should spend more time on. Having knowledge at your disposal will make setting financial objectives much simpler.
Start with the easier books first, such as best-selling works by Bo Sanchez or Chinkee Tan. Rich Dad, Poor Dad by Robert T Kiyosaki is also a famous book that will teach you a lot of important financial principles. But if you want to learn more, check out the books Investopedia or other top financial periodicals recommend.
4. Build your Emergency Fund
If you haven't started this yet or you have no idea what it means, then this might be the best new year's resolution you can do for this year.
Emergency Fund is a cash reserve that you allot for when unexpected things happen or from the term itself for emergencies. The Covid-19 pandemic is a great example of why an emergency fund is important to build financial stability. We all know how the pandemic affected many jobs and lives of people, which resulted lost of savings and even to debt. We can never be sure of anything but having reserved cash for emergencies, allows you to protect your savings and refrain you from borrowing money.
Generally speaking, your emergency fund should equal three to six months' worth of costs or income. If you have a family or dependents, you might want to raise your emergency fund goal this 2023.
5. Invest in yourself and in your health
As much as you all need to save for the future, it is also important that you give something back to yourself. Protecting your well-being comes first because it is your most valuable possession. When you're not healthy, it's impossible to earn money. Additionally, your finances will deplete faster if you become ill.
To do that, you could save a portion of your money on long-term investments or even on things that will pamper yourself. You can begin by living a healthy lifestyle right away. You can invest in a gym or have a meal plan prepared for you by a registered dietician. If you are employed, make the most of your employer's health coverage while you're at it. You can also purchase your own health and life insurance coverage so that you have money set aside in case you become ill or need to go to the hospital.
Money could never buy you happiness, but it can surely bring you stability and financial freedom. As you age and become more realistic, you'll also come to understand that money can truly be used to purchase convenience, serenity, and time, all of which are necessary for leading a happy life. That's why it is important that you invest in yourself and set financial resolutions this new year. It is your chance to have a fresh start and build the life that you always want.
If you are looking for an investment, building your condo home with Vista Residences might be the best 2023 financial resolution for you. For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.