The New Year is well underway and we are nearing the end of the first month. By now, several New Year’s resolutions have been forgotten, postponed or, if the individual is really keen, in the works toward completion. Most New Year’s resolutions are focused on generic things like losing weight, eating healthier and becoming more adventurous. While these are all good in their lanes, financial prudence should also be emphasized.
You can channel your energy for the New Year into resolutions that will help you save money. Saving is a lifestyle which, like most habits, can only be developed one step at a time. You can choose to start small, or invest a whopping amount, but whichever way you choose to explore, make it your New Year’s resolution to save money. To get you started, here are five New Year’s resolutions that will actually help you save money.
One of the reasons why people struggle to save is the fact that they are constantly paying off debts. As a result, any income they get goes towards paying a debt or the other. Make it your New Year’s resolution to avoid debts as much as you can, and pay off all your debts as fast as you can. Otherwise, you’ll keep earning to pay, not to have.
Generate an extra source of income
The importance of having an additional source of income cannot be overemphasized. Human wants are unlimited, and as such, it is important to generate enough income to settle the most pressing wants. You can dip into a fast-moving business or start-up something new, just to earn a little extra on the side. That way, by the time your main income arrives, you won’t be restricted to that bracket of revenue.
Invest in your retirement
There is no such thing as ‘too young to save for retirement’. In fact, the earlier you start saving, the better your retirement plan. You can start a government-authorized Registered Retirement Savings Plan (RRSP) and put aside a portion of your monthly earnings, without paying tax, towards your retirement.
Build a budget
This year, live on a budget that allows you to have the basic needs and just a little extra. No need for extravagances. Build a budget to guide your lifestyle.
Start a rainy day savings
Save towards eventualities. It will ensure that you are not caught unprepared for any happenstance and give you a sense of financial security and confidence.
Don’t be scared by your savings target, just take it in little bits and with some discipline, you’ll definitely achieve your goal before the year ends.