I love New Year’s Resolutions. Do you have one? I hope so. It brings excitement, optimism, focus and a better self. At this time next year, what financial accomplishments would you like to have achieved?
If you are unsure, I would like to recommend 5 New Year’s Resolutions in regards to your personal finances. This will ensure that you are on the path to increasing your Net Worth and financial freedom. I use the S.M.A.R.T Principles, when writing down goals or New Year’s Resolutions. S.M.A.R.T. is an acronym that stands for:
- Specific
- Measurable
- Achievable
- Results-focused
- Time-bound
Here are my 5 recommended New Year’s Resolutions for 2018
1-Calculate your Net Worth every 3 months
- This will provide you with a clear picture of your financial wealth (or lack thereof).
- When you calculate your Net Worth every 3 months, you will be able to plainly see your assets/liabilities increasing or decreasing and it will keep you focused.
- For more information, please read my article on How To Increase Your Net Worth.
- Print/fill out my simple Net Worth Analysis sheet.
2-Set up and follow a budget for 1 month
- I am not asking for a 12 month commitment; I am asking for 1 month.
- You need to be intentional about every dollar you allot in your budget.
- Stick to YOUR set budget.
- For more information, please read my article on Budgeting.
- Print/fill out my Simple Monthly Budget (Entertainment Budget).
3-Payoff your smallest debt
- Paying off any debt can seem daunting. That is why I recommend first paying off your smallest debt.
- For more information, please read my article on Tips To Paying Off Debt.
4-Increase your retirement account, 401(k) or 403(b) by 1%
- You probably will not feel the financial difference in the short-term but come retirement time, you will be glad you did it.
- For more information, please read my article on Retirement.
5-Do Not Eat Out For 2 Weeks-Invest That Money in #3 and/or #4 above
- The average American spends $232 per month on meals prepared outside the home, according to the article, Don’t Eat Out As Often from The Simple Dollar blog.
- By using the example above, take $116 (2 weeks) and invest it by paying off your smallest debt and/or increasing your retirement account.
Setting and achieving your personal finance goals or your New Year’s Resolution(s) will help you continue on your path to financial freedom.
FOR 2018….BE FINANCIALLY CONFIDENT AND DREAM BIGGER!
