You have just entered 2018 with new hope, enthusiasm and resolutions for the new year. Whether you want a vacation, an upgrade, a good investment or better organized with your finances, you have more potential to reach your goals with a solid financial resolution. Your financial resolutions for the new year should be simple, tangible and responsible.
Here are some ways to set and reach your financial resolutions in 2018:
Watch your credit report
Regularly review your credit report to rule out any fraud or fraudulent activity. You can request a free annual credit report from some of the major credit reporting companies. It’s now easier for you to monitor your credit and be aware of important changes in your credit report by signing up for free credit monitoring.
Pay bills just after the salary
Paying your bills immediately after the pay day saves you from being penalized for late payments and helps maintain your credit score. It also allows you to avoid expensive and unnecessary purchases.
Get over your debt
Make a practical goal for how much you want to set aside in the new year to reduce your debt liabilities. Divide your debt amount into manageable pieces. Some financial experts recommend the snowball method, which can help you focus on paying off your higher interest debt first.
Diversify your credit cards
Expanding your credit card uses allows you to get the highest possible status on each card, instead of paying for ordinary terms on a single card. It will also help you reduce the cost of your debt, keeping in mind that regular purchases will not increase your regular bills.
Create your emergency fund
An emergency fund gives you a buffer in the form of extra money in case of unexpected unemployment or medical emergency. This is why you should create emergency reserves as a priority during a fiscal stimulus. It is recommended to create a fund with net income for a period of about 12 to 18 months.
Review your credit score
The main way to improve your credit is to have an active credit card account that is maintained to have a good reputation. Your card will then begin to earn a positive status that will be reported to major credit bureaus on a monthly basis, while helping you improve your credit score.
Improve your financial knowledge
Improving your knowledge about money and private financing will help you decide smarter. It is advisable to start by evaluating your status through an online quiz. The results will give a clear picture of the areas of improvement. By 2019, the results of the quiz should be better than the previous year.
Respect a budget
Making and tracking a budget will help you avoid overspending or neglecting to plan future expenses. The steps to make your budget include preparing a list of recurring costs in descending order of importance. In the event that your monthly expenses exceed what you earn, start minimizing the expenses of the lowest part of the list.
Get a better job
Improving your paycheck is an important way to improve your financial health. Consider finding a better job in 2018, even if it means relocating to another city. You may also consider it worth looking for ways to increase your current income.
Do not neglect your health
Taking care of your health in the present can help control future health care expenses. There is a definite link between physical, emotional and financial well-being. Feeling better will serve as a basis for better financial decisions by putting more emphasis on the long term.
Define your financial target
Your financial goals must be specific, realistic, measurable, achievable and timely. They should also be divided into practical steps to make them more feasible. Plan for your short- and long-term goals based on your current financial situation, including your income, savings, insurance, debts, investments and retirement pension.
Review your insurance policies
The New Year can be a good time to evaluate your insurance policies to make sure you receive the best deal and get adequate coverage for your assets. Explore the policies of other insurance companies to see if you can update your policy for a better deal.