New Year, New Savings: Financial Resolutions for a Prosperous Year Ahead

Just as we set New Year resolutions like joining the gym or learning a new skill, we should also focus on our financial goals.

Published on 2024-01-01

By now, we are all used to adding a little clarifying note at the end of the saying: “Money can’t buy you happiness”. Although we know this to be true, we are well aware that money does contribute to our happiness. So, what better way to start the year than by setting goals that will ease our minds and help us reach our life goals?

Resolution 1 - Know your worth

The most logical way to start the New Year is by calculating your net worth. Although this can be intimidating, it is necessary and doesn’t need to be fancy. You simply need to write down everything you own: money in your account, savings, investments, cash, and property. After doing so, you are only halfway there because now you need to consider your liabilities: your credit card debts, loans, mortgages, etc. Bear in mind that this resolution will not necessarily lead you to the most upbeat start to the year. Many people who calculate their net worth for the first time feel overwhelmed when they see the balance of what they own against what they owe. However, this is the best starting point because it gives you a clear picture to move forward in the right direction.

Resolution 2 - Learn a new skill

The first step to making sound financial decisions is having the right tools. There are basic skills in bookkeeping and budgeting that we should all master. However, more often than not, we find ourselves lost in the numbers. The best goal for the New Year is to do training in personal finances. There are plenty of options out there to fit your needs. You can find sales or discount gift cards to buy courses and start at your convenience.

Resolution 3 - Become master and commander

The thing that will become a game-changer in your finances is leaving nothing to fate. To get your finances in order by paying off debt, reducing expenses and increasing your savings, you must first know what is happening on every front. Set a schedule for your daily, weekly, monthly, and yearly tasks. For example, you can lock in a few minutes in your day to register the expenses. Every week, you can revise your budget and adjust accordingly. Doing this before the weekend is best because it is on these days when your non-essential spending can skyrocket. If, by Friday, you know you spent more than your weekly budget, you can make smart decisions like staying in on Saturday. On the contrary, if you’ve been thrifty the whole week, you can choose to go out Friday night. Set similar revisions and controls for your monthly and yearly financial goals.

Resolution 4 - Start a side hustle

The New Year is the ideal time to revise the previous year and reflect upon ourselves. Use this opportunity to consider your talents and weigh whether your extra skills can become profitable. You can find a myriad of ideas online about the options you have to earn money aside from your main income. Pet sitting, selling handicrafts, driving services, circular fashion options, and completing surveys can become an activity you enjoy and profit from. Your side hustle has to be compatible with your nine-to-five job to avoid burn out.

Resolution 5 - Try out the investor suit

With the tools we have today, you can become an investor with little hassle and no need for intermediaries. Set aside a little money to invest in any way you feel comfortable. Do not risk a lot of money because the idea is to learn and feel what it is like to manage your investments. This resolution depends on Resolution #1: You need to know exactly how much money you have to plan where you would like that money to be and then make informed decisions. Trying out the investor’s suit is worth it because you can learn and discover ways to make your money work for you.

Use the New Year to reflect upon your financial year. Focus on the goals you did reach and how you have successfully managed your finances. At the same time, consider how you can improve your circumstances and set realistic goals for the year to come.

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