Now that we’re approaching the tail end of February, it’s not too early to assess the success of those New Year’s resolutions you made for 2022. Many of these have a familiar ring such as losing weight, spending more quality time with family or friends, or taking up a new hobby. While many people have already started to drift away from these good intentions by Valentine’s Day, there’s another resolution to which you can still dedicate yourself this year.
Getting into better financial shape is an important goal because it will bear fruit not only for the rest of this year but also for the ones that follow. Try these individual resolutions to improve your financial situation before the next new year rolls around.
Change Your Coffee Routine
Believe it or not, a fair number of articles on financial planning deal with how to cut coffee out of your daily routine. While you might be in denial about how many points you’ve accrued on that Starbucks card, you should look at how you spend your money on coffee instead of trying to eliminate it altogether. In order to cut back on your Starbucks outlay, try brewing your cup of joe at home or purchasing pre-brewed coffee from the store.
The bigger financial issue here isn’t expensive coffee. Instead, it’s about how to get rid of unnecessary expenditures. Whether it’s buying another soda or snack at the gas station on your way back to the pump, all of these items tend to add up. Nevertheless, you can help both your waistline and your wallet by reducing your dependence on unhealthy and unnecessary snacks.
Take Account of Your Financial Security
Taking stock of your current financial well-being is a resolution that’s within reach for anyone. To accomplish this, look at how secure your income is and whether your current expenses will stay the same or not.
If expenses have been going up steadily, you need to ask yourself why. Are you charging more on your credit card than you used to? If so, what kinds of things have you spent your money on? Examining how much money is going out and whether it’s sustainable should give you an idea of how financially secure you are and if changes are in order.
Formulate a Savings Plan
If you’ve already got a decent nest egg, it’s time to begin protecting it. Many people, for instance, invest in life insurance as part of their financial planning. Buying a life insurance policy can be a great way to safeguard your income.
Similar to a budget, creating a bona fide savings plan can put you on the right track towards a financially secure future. With the information gleaned from the step above, you can see how much money is left over after expenses that can go towards your savings plan.
Then you can set up automatic transfers to a high-yield savings account to grow your money without having to think about it. An effective savings plan is like having a road map to a better financial life. And it all starts with a plan to put aside a portion of the money you are earning right now.
Consult a Financial Services Professional
Meeting with an experienced financial services professional is another goal that you can achieve right away. An experienced financial advisor can look at your situation objectively and recommend the best options for your current situation and how to guarantee a comfortable retirement.
You could also speak with a licensed tax professional to get help saving money on your taxes this year. Financial services professionals are a terrific resource because their job revolves around improving people’s financial well-being.
Resolve to Stick with the Plan
Last but certainly not least, you need to adhere to the plans you’ve made. Persistence is the main reason that people become financially secure. The key is to develop a strategy that works and stick with it for the long haul. Furthermore, making these habits a normal part of your daily life will help you develop your financial literacy.
By following these individual resolutions, you will naturally achieve your overall goal of greater financial health for this year and the years to follow.