The end of the year is the perfect time to think about all the changes you would like to make in the coming year. And while dating and health resolutions have their own place in our lives (and minds), it's important not to ignore the financial side of things. Yes, it's time to start adulting for real and make a few financial resolutions for the coming year. Here are a few ideas and simple changes, to begin with.
1. Check your statements
It's as bad as not counting the change when you buy something off the street - only much worse. To be financially smart, you can't ignore your statements anymore. Make it a point to log into your net-banking account every month and check all the credits and debits on your statement. It might be unlikely, but banks can mistakes too. And they can prove costly to you Plus, looking at the numbers might make you realise how much money you're spending on things you really didn't need, where you could have easily cut back, and how much interest you're paying on your credit cards. There's no startling financial reality check like seeing all your expenses stacked up in rows (and rows!).
2. Pay your bills on time
I shouldn't really have to tell you this, but since I know some of us are still huge procrastinators when it comes to paying bills, I will. This isn't like when we were younger and the phone balance would run out. No, many of these late payments result into hefty interests and late payment fees that can quietly stack up to thousands of rupees you could have easily saved. For what? Just because you were too lazy to do it a few days earlier. Plus, they can negatively affect your credit score, which could become a problem if you ever need to take out a big loan someday.
3. Follow the financial news
I know that it can be really boring at times, but it can also be really interesting and help you save a packet, if you're regular about it. Following financial news will help you keep track of the companies you've invested in and pull out your money before things get so bad, they become common public knowledge. If you're following financial news to help you make investment decisions, make sure you do it thoroughly before putting your money anywhere. Also, with so much happening in the crypto-currency world, you just can't afford to stay ignorant.
4. Consolidate your papers
Your tax return statement, your FD receipts, your salary account papers, your cheque books... And I'm sure there are tons more. It's important to have them all in one place - especially if there is an emergency and you aren't available to look for them all over the house. Be practical and just buy a multi-pocket folder for it all.
5. Get to know your taxes
File your taxes by yourself, in the coming year. Again, there's nothing like seeing all your expenses, in cold black and white numbers, to shock you into spending more conscientiously and saving more aggressively. Did you really need that new cell phone, when it cost you a whole month's salary? Apart from being a rite of passage to being a fully-functioning adult, filing your taxes on your own is an empowering experience. We should all stop depending on our parents or accountants to take care of it. I'm totally taking this on a personal challenge - if some of my friends who are younger than me can it, so can I (hopefully, fingers crossed).
6. Make up with your salary breakup
I get that it's not the easiest task, especially if you're not so great with numbers. But it's very important to know what you're talking about when you're negotiating your salary. A better understanding of the breakup can help you get a higher in-hand with the same CTC. Something to think about?
7. Plan a small investment
Discuss it with a financial advisor/ family/ trusted friends - before you a make a decision about what you want your first independent investment to be. There's a lot to learn from from other people's experiences, so pay attention to everything they have to say. And start small - even if the opportunity and returns seem too good to miss out on.
8. Write down your goals
It seems a bit lame to make a list on paper - so make it on your phone for easy access. Decide exactly where you would like to be, financially, by the end of the year. Be realistic, but it's also okay to aim just a little higher than what you think is comfortably possible. Refer to the list at the start of every month and track your progress. It might push you to make more practical financial decisions all year long, even if you don't actually end up achieving all your goals.
9. Don't get another credit card/bank account
You will get the call almost every week if not more often. But refrain. If you don't need one, don't get one. The ones amongst us who do have credit cards, probably have one too many already. Sure, they have tons of benefits, but each card has a different set of perks because people have different needs. Get the one that suits you and stick with it. The more cards you get, the more you will invariably end up spending. Remember, you might be paying a small installment each month, but ultimately, it's leading to piling interest, and ALL of it is coming out of your pocket, sooner or later.
Comments
