We all know that 2020 is approaching, and most of us are already looking for inspirational new year financial resolutions.
Whether it is to start exercising every day, drinking more water or reading a book a month, we all want to develop healthy habits that resonate with what we wish to become in the near future.
With money, it shouldn’t be different. Some of us are in debt, some are beginning to think about retirement or saving for the kid’s college. Many are interested in starting a new career in trading or just want to buy something they have wished for a long time.
Money is what makes the world go round, so at least one of our financial new year’s resolutions should be related to it if we wish to become better people.
1. Make more money in the new year
Making more money should be every average person’s new year resolution.
We all need more money – whether if it is to live comfortably, to pay a debt or to take a trip with our families.
Making more money by itself isn’t such a tangible financial new year’s resolution, right? It’s like “I want to be pretty”. We can’t just become pretty. We follow some steps and techniques that will eventually help us achieve that.
These articles give you ideas to help you achieve the “make more money resolution” in a way more smoother way. Here are a few things you can do to make more money:
- Creating a blog or vlog
- Selling products
2. Save more money in 2020
If you think you already make enough money, but that your problem is with saving, then this can be the perfect new year’s resolution for your case!
Saving combined with making more money is the recipe for success.
If you feel that you’re too busy to take on new projects that will help you make more money, start saving small amounts every day to begin developing some amazing saving skills.
In the article Essential Money Skills for Women, I have discussed and explained a few saving skills for those ladies who don’t know where to start.
Read it if you want to learn better about changing your mindset to save more money and categorize your savings.
A few tips for whoever wants to save more money is:
- Teach the kids to save and budget
- Make a commitment to saving if budgeting doesn’t work for you
- Find out how much money you can spare to save
- Save on the supermarket
- Save with clothes
3. Reduce financial costs
Reducing costs allied with saving is a badass financial new year resolution! If you want to become an independent woman more than anything, for example, you should make this your priority.
The best way to start your financial education is by looking at and analyzing your monthly or weekly expenses and cutting out unnecessary spending.
For example, let’s say you subscribe to a streaming program that you never use, or that you have a magazine subscription that you never read.
What should you do with that? Cut them out. This is your money going down the toilet.
Rethink the gym membership that you never use. Do you actually watch cable TV?
This article shares how you can save an extra $500 per month.
When you save all this money, make sure you don’t spend with other things but that you invest in your future.
4. Invest more money in 2020
Maybe you don’t want to get too deep into trading because you don’t have the time to learn or you are afraid of losing money.
That’s ok, you can always invest.
Your new year financial resolution may be to start thinking about your financial future and/or college expenses.
If you’re starting to think about expenses that you know you’ll have in 15 or more years, for example, why don’t you start investing now?
When you start off early, you won’t even feel the pressure of saving a large amount of money, because you’ll be investing a smaller amount every month for decades. This will inspire you to save more money every month as well.
Investing is a thing everyone should do. In the article 5 High Return Passive Investments Paying More Than Banks, you’ll be able to know where to invest your money in a high-return investment and earn some extra cash passively without any sweat.
Some high-return passive investments are:
- High Return P2P Lending
- Passive Income With EToro Copycat Trading
- Passive Investment Funds
- High Return Property Pooling
- Passive Income From Crypto Mining
Turning New Year Financial Resolutions into Actions
Resolutions are only words, and we can say anything we want. The question is: are we going to act on these words?
As I said before, you can’t just use the sentence “I will be rich” as a resolution, it won’t work.
You’ll need to make the new year financial resolutions as tangible as possible, and here are some examples:
- I’ll save £200 every month;
- I will invest £100 in a high return P2P lending fund every month;
- Whenever I buy something, I have to sell something else;
- I’ll start writing a book about trading and sell it;
- I will work part-time as a babysitter;
- I’ll make at least £300 monthly as an extra income;
All of these are SMART goals that you can adapt to your needs and dreams.
Usually, we never follow our new year resolutions’ goals for too long. By the end of January, we’ll have forgotten most of them.
This is the biggest problem, but you can avoid it by keeping a habit journal and writing down every day or every week what you did that got you closer to the goal.
Writing goals down gives you an x10 more likeliness of them occurring.
Once you have the goals, build an action plan.
A systematic step-by-step guide of what you can do to achieve your desired goal.
Let’s say you resolve to save £200 every month. An action plan would be to:
- Set up a weekly budget
- Reduce costs (e.g. transferring your kids to a less expensive school, doing your nails by yourself, stop buying clothes every month)
- Withdraw the money you saved and place them in an envelope
- Wait until the envelope cash reaches £200
- Repurpose the money by investing it somewhere safe.
How to get your make your financial goals reality in 2020!
Everyone should have at least one new year resolution related to money.
It isn’t too much to ask to have one new year financial resolution is it?!
Check what are your priorities and future goals, and see what resolution would be the best fit for you:
- Make more money
- Save more money
- Reduce Costs
- Invest more money
Whichever is your resolution, I wish you good luck!
And don’t forget to share with us what are your money-related plans for 2020.