1. Reduce your debts
The importance of reducing debt cannot be quantified. The faster you get relived from the burden of debts, the faster you can start investing. It frees up your money. Gives you higher degree of freedom with your money. You can invest it to earn more money. You can simply save it for bigger goal. This vow can make wonders work for you by the next new year.
2. Insure yourself & family
Insuring can protect your money. Unfortunately, life is uncertain. Miseries can knock ones door when it is least expected. Whatever your financial priorities be you can’t overlook the importance of having an insurance for securing the future of yourself and your loved ones. Though they don’t give you direct returns, it does protect your money at uncertain times. You don’t have to dig into your investments or savings when in need. Insurance not only protects your money but also ensures you or your loved ones be worry free and get the right treatment without the worry of money.
3. Plan your tax
Do not forget to maximize your savings by employing tax saving strategies. Do it before its too late. You still have three months before March end to invest systematically in tax saving instruments.
4. Reduce the use of BNPL apps or credit lines
It is very easy to access free credit lines in today’s day and age. You may be offered with easy loans or may be using a Buy Now Pay Later feature. You may have even signed up for split the bill features offered by multiple companies. It is important to understand what happens in the background. You can read more in detail about this here. These are loans and you may not even be aware of this. It is easy to get into this but once trapped, you may end up losing a lot more. Hence, it is always better to completely avoid these even though they are very convenient in daily life.
5. Earn passive income/ Increase your income
Find ways to increase your income this year, either working towards a substantial raise or finding another source of income, however small it might be. If you are one of those who find it difficult to find an alternate source of income, you can try good quality stocks that are bound to grow. Some stocks even give you dividends. It could little but it is a passive income and a good place to start with.
6. Live below your means
One of the biggest financial mistakes most of us do is chase luxury very early in our life. We want to live alone in an apartment at a high-end society. We want to drive to our office. We want to party every Friday night at the most happening pub in the city. Yes, you can afford all of that. But what it does is, it takes out that little extra money out of your pocket. That little adds up which otherwise you could invest in future. Yes, quality living is important, but if you can manage to live below your means, save that extra dime and invest it, it will definitely earn you more money in the future. Especially if you are a bachelor, always live below your means.
7. Invest in yourself
Invest as much as you would like on yourself that can help you grow. It could be in knowledge, a course, a new hobby anything that will help you grow. Today’s world is dynamic and we need to adapt to it before its too late.
8. Reward yourself
Rewarding self is as important as any of the above vows. It could be by gifting yourself with something you always wanted. Or it could be with completing a goal you wished last year. It could even be travelling. Rewarding will make you want more and motivate you to get better at financial decisions.
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