How to Make Personal Money Resolutions that Actually Work

Money managemnet

Money managemnet

Most people who set a goal or resolution give up on them sooner or later and the reason behind this is they try to do too much or set vague goals and this is especially the case of making personal money resolutions, people make money resolutions so they are able to manage their finances better and to be able to save up money for things that are really important and below will be listed a few ways on how to make you personal money resolutions actually work.

1. Pay your debts: Most people have debts that really make it hard to manage your finances or save up so the best thing to do is to pay your debts off, first you start off with the smaller debts and then work your way up to the bigger ones if you make your milestones small and easy to achieve then you will be able to achieve more quickly.

2. Plan a budget: one of the best things to do it to prepare a budget of how much you are able to spend and where and after you plan a budget try sticking to it as much as possible, always keep you bank book updated and know how much you are spending each day and on what and have separate budgets for food, things, transportation, etc. Outside of simply finding a way to make money on the side, this is the single largest impact to one’s financial well being.

3. Emergency Fund: Sometimes things go wrong and you will need extra money to handle things so it is wise to keep and emergency fund which will really help you during these times, it is ideal to keep around 5 to 6 months of living expenses as emergency fund which might sound hard to do but since you can build this fun slowly it is rather easy.

4. Unnecessary expenses: This is one of the main reasons that makes it hard to save up or maintain personal finances, always think before you spend and if you don’t need something then refrain from making that purchase, instead of eating out cook at home, instead of buying coffee just brew you own at home, don’t buy too much junk food or soft drinks etc and if you refrain from making unnecessary expenses then it will be easier to stick to your budget plan. It is best to start with the small purchases you make and then make your way towards the bigger purchases

5. Savings account: If you have idle money then it is best to put that money in a savings account which will help you receive a small interest and since there are banks that provide a higher interest you can do your research and find a savings account that gives you a better interest which will help you build you savings faster. Putting your money in a fixed deposit is even better and can help you beat inflation.

These are some of the things that can really help you with your financial issues and the trick to it is to start small and then build your way up and always keep a record of how much you are spending or earning and if you do it right then it will be easier to make your resolutions work.

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