Financial Resolutions For 2014
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A few days ago, I covered the financial lessons I’ve learnedin 2013. Since 2014 is just around the corner and people are already making their New Year’s resolution, it would be apt that I share my financial resolutions too. These are a few inspirations that can help my finances better. And I hope yours too. Plus, these are relatively easy that anyone can keep and realize all year round.
Setting up a financial goal. I already have a financial goal to reach this 2014. I want to have this particular amount before 2014 ends. Having a goal in mind will motivate you to work hard and save harder to reach it. This will also dictate how you will handle your finances for the year. Plus you can also serve this as a motivation to pursue other cash flow avenues. Check the cash flow quadrant I shared here. Setting up this goal does not only limit to how much you would want to save for the year. This also includes saving up for retirement or more. When making this one, make sure it is attainable and realistic.
Keep track of my finances. This year I want to keep track of my finances. Knowing such items would let you identify just how much you are spending in a day or in a month. With this, I already have a mini notebook with me that I shall be taking wherever I go. I also downloaded an Android app in my phone that also does the same thing. I shall be sharing this app in my future posts. Noting my expenses will also help me identify where my money goes.
Pay off debts. I still have major debts to pay and I carefully planned it to finish within the year. Thank God for salary deduction that I would be force to pay it. It is better to have a plan to pay the debts that you have. If you don’t have an automated salary deduction, it is your responsibility to do the paying. No additional loans or debts for me not until I paid all my dues.
Five Envelope Salary. "My Maid Invests in the Stock Market" book by Bo Sanchez suggested following the five envelope salary. This means dividing your salary to five envelopes. These are Tithe Fund, Expenses Fund, Support Fund, Emergency Fund and Retirement Fund. When I have my salary before, I normally divide it into two, savings and expenses fund. Now, the book let me realize that you also need to give to the church, beef up your emergency fund and also your retirement fund. The retirement fund may be in a form of investment like stocks or mutual funds. For my Tithe Fund, I plan to set a portion of my salary for charity. For support fund it would be dedicated to education of a relative. I will also open another account for my emergency fund.
I know New Year’s resolutions are pretty hard to keep. I am crossing my fingers to fulfill each. How about you, what are your financial resolutions?