10 Personal Finance Resolutions for 2019 to Put your Financial House in Order

10 Personal Finance Resolutions for 2019 to Put your Financial House in Order

1. Review your finances and define your personal goals

Take stock of your assets and liabilities, review your finances. Understand how money works. For instance, controlled credit card spending means lesser debt; less spending on unnecessary purchases (like impulsive buying) means more savings. Think about what you would like to save for (children’s education, new home, car, a dream holiday, etc.) and consider how long you would need to save up to achieve that particular goal.

2. Start budgeting

2019 is here and now is the perfect time to prepare a budget for the coming year. However, as it often happens, while you manage to successfully plan a budget, you fail to stick to it. Staying within the budget will not only ensure that your expenses are planned but also ensure you achieve your financial goals. Temptations lead to debts and problems in the cash flow. Stay up-to-date on your bank transactions through online or mobile banking. Find out your credit score to determine your financial status. Try improving upon it. Update your budget regularly.

3. Involve family while taking financial decisions

Teach your children about saving money and cutting down on unnecessary expenditure; educating them about these basic financial concepts will provide clarity on the family’s financial goals. Plan household budgets collectively, so that everyone may participate in saving and spending, and the responsibility is equally divided. Consider setting up a savings account for your children to encourage their own financial literacy.

4. Start saving for your health

To ensure good health, you need to start planning early. Investing in a comprehensive health insurance plan is a great way to do that. With the spiraling cost of medical treatment, a good health insurance comes in really handy during a medical emergency. Safeguarding the family against such financial crisis is good planning.

5. Start planning for your child’s future

Saving for children's education is usually a top priority for parents. However, proper planning is still far away for most parents and thus they end up in debt while arranging money for the children’s higher education. Open up a separate account just for this goal. It's never too early or late to start saving for college.

6. Secure the future of your loved ones

Life insurance is fundamental to financial planning. Ensure you are optimally insured and that the financial future of your family is secured. Assess the amount that your family would require to retain the same standard of living in the absence of the earning member and plan accordingly. A term insurance plan is extremely affordable, yet provides comprehensive security to the insured and his family.

7. Save more money each month

Saving more on a monthly basis tops Americans' list of goals for the coming year, and one of the easiest ways to do so is to automate your savings. The logic here is simple: You can't spend money you never see, so if you arrange to have a portion of each paycheck land directly in your savings account, you'll avoid the temptation to blow that money on other things instead.

8. Pay off credit card debt

Credit card debt is bad news, so eliminating it is a smart goal to strive for. To start, take a look at your various balances, see which have the highest interest rates, and tackle those first. At the same time, you might consider transferring your balances to a term loan with a lower interest rate, which could help you pay off that debt sooner. 

9. Start saving for your retirement

You should start planning for your retirement by your late 20s. But if you haven’t done that as yet, you can start from the beginning of 2019. Saving for your retirement will help you ensure financial stability when you are beyond the reasonable age of working. Invest in retirement plans like public provided fund, annuity plans, National Pension Scheme or insurance policies that guarantee return on the maturity of the policy.

10. Stop wasting money

Offers at shopping malls, restaurants, and online businesses are lucrative and you end up buying things that you do not need, and that is a great depletion to your savings. Cut down on impulsive shopping and put it in the savings account you have created or invest it.

What is your financial resolution for 2019?

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