5 Smart Money Moves For A Better Financial Life
If you aren’t sure where to start, here are 5 smart money moves for 2019 so that you can have a great 2020
Photo Credit : Shutterstock
New year is just around the corner. It’s that time of the year again when most of us are busy setting fitness goals, targets and resolutions. While we do set goals for our physical fitness, it’s also crucial to start planning for financial fitness. With 2018 winding down, it’s an excellent time to start planning your money strategy for the whole year. Making smart money choices requires a well laid out money strategy, a bit of education and a lot of willpower. From mending your money spending habits to saving up a little more every month, a few smart money habits can put you on the right track of being wealthy.
If you aren’t sure where to start, here are 5 smart money moves for 2019 so that you can have a great 2020.
Avoid Instant Gratification: SALE, SALE and more SALES is going to be the order of the day in 2019. With more and more e-commerce sites offering bigger discounts to get a share of your wallet, you are sure to spend a lot more time browsing through shopping websites. Avoid these distractions. Restrict your spending by setting a spending limit for yourself. Find unique methods to save, store and invest your money. Even if it’s a small amount,bundle them up and save. Using a Piggy bank or dumb box is a smart way to begin savings. When you avoid instant gratification and save money you are giving your money a chance to accumulate and grow. If you are able to resist your ‘I want it right now’ temptation, you have successfully overcome your first obstacle towards money creation. Instant gratification can be an expensive affair in the short term and it can snowball into a bigger problem if it can’t be controlled.
Invest in Developing yourself: If you are investing enough time in making yourself better at your work, your income producing ability is sure to increase. Invest in developing new skills. Become better at what you do. Improve yourself so that you become more valuable to your employer, your business and in your life. Even if it’s a hobby or passion that you like to pursue, invest your time and money to learn or get better at it. In today’s fast paced world, it’s all about having the right skill to navigate and even earn sufficiently.
Think Long Term: Start working towards a long term financial plan for your life. Plan for 2025 and 2030 in 2019. Planning ahead is a key trait of successful people. We often underestimate the benefits of what we could achieve over the long term whether it’s savings, cutting down on spending, investing or even starting out on our own. Over time we appreciate the value of these changes we make and reap a rich reward in our lives
Build a Nest Egg: Most of us would have heard the acronym VUCA ((Volatility, Uncertainty, Complexity and Ambiguity) World.One should be prepared by keep a safety margin for all financial resources. Creating a bucket of money( liquidity ) that isn’t prone to market risks and can be accessed almost immediately is important during emergency. If one already has considerable nest egg savings, consider evaluating the amount and building a bigger margin of safety. Be prepared for any health emergencies. As you age, health issues might arise without a warning. Plan for your medical expenses and health insurance well in advance. One should consider investing in health insurance early on. As one grows older insurance becomes more expensive.
Get out of Debt: Debt hampers your ability to build wealth. From erratic shopping habits to business losses, debt can wreck your finances in more ways than one. Cut your urge to spend, avoid any fresh liabilities and prioritize your debt repayment. Once you are out of debt, you will have the freedom to allocate your money in the right direction.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.