2019 is coming through fast, and if there’s one thing you should get sorted sooner rather than later, it’s your finances. Getting your finances in order can give you peace of mind, as well as a much more comfortable future. You might think that you have all the time in the world to get these things sorted, but the sooner you start, the better.
Below, we’ll talk about some important considerations you should be making for your 2019 finances:
First of all, what are your goals? If you don’t have any, now is the time to set some. Doing this before the year is out can give you more of a focus for the new year and stop you from putting off the important stuff. Having financial goals both big and small will give you more of an incentive to make smart decisions with your cash. However, it’s important that you make your goals detailed and actionable. The vaguer your goals are, the least likely you are to meet them. For example, making the goal ‘save for a mortgage’ isn’t ideal. There’s nothing you can really measure your success by here, and it isn’t actionable. Instead, you should include the amount you want to save for a mortgage, and when you want to have saved this amount by. You can also include how much you want to put away each week/month towards the mortgage. This way, the goal is actionable and you’ll be able to see whether you’re meeting it or not.
What are your own financial goals? Some examples to follow:
Of course, your financial goals are all your own and completely personal to you.
We mentioned having an emergency fund as a goal, and there’s a reason. Having an emergency fund in place is one of the smartest things you can do – it stops you from taking out credit when you have an emergency, and it can give you peace of mind.
Experts suggest that you have a minimum of 6 months living expenses saved up. Some suggest a year. Work towards this goal aggressively and put it somewhere you can access it easily if needs are – don’t worry too much about interest.
Building wealth is a must if you want to live a comfortable lifestyle and feel able to do whatever you want in the future. It can be a great goal for retirement – most people don’t end up building any real wealth, as they continue swapping their time for money until they don’t have a lot of time left. Working your 9-5 job is never going to help you to accumulate true wealth. Investments are one of the best ways to begin building wealth; you can start to learn about Bitcoin cash for an idea of what to invest in, and you could also look into the property mindset. Every investment comes with a level of risk, but that doesn’t mean you shouldn’t get started. The earlier the better with investments, due to the magic of compound interest.
Think about where you can cut back and save in the new year. Could you switch utility suppliers, or cancel a membership that you’re not getting used out of? Making these changes can be a quick way to improve your financial situation and give you more cash to put towards your goals.
If you have debts to pay, your main concern should be to pay it off. The longer you leave it, the more interest you’ll have to pay. Make sure you’re paying as much as you can. You may need to make some sacrifices at first, but it’ll be worth it when you’re debt free.
Making big financial purchases isn’t something you should think about lightly. Whether you’re buying a car or a home, you’ll want to do your due diligence first to ensure this is something that’s going to be worth it for you.
You don’t need to make a major purchase on the spot, so make sure you’re smart and you choose to sleep on a big financial decision. Doing this even with smaller purchases can help you to save a fortune in the long run.
CEO and Founder at Mighty Shouts.
*Enter your best email, we'll send this case study directly to email.
** Don't worry. We never spam or share your information with anybody.