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Financial new year's resolutions
By MyBudget Editor

Financial new year's resolutions: how to get financially fit in 2019

If you’re aiming to whittle down debts or even get debt free in 2019, you’re going to need a set of sturdy financial new year’s resolutions. 

In a way, the process of achieving financial fitness is just like the process of going to the gym to develop strength and lose weight. You need a vision of what you want to achieve financially and a plan to follow through on your financial goals.

If you’re not sure where to start, that’s totally okay. 

Here are a few new year’s resolutions ideas to kickstart your journey towards financial freedom this year.

Create a budget

If you’ve got an inkling that you spend more than you earn and don’t have much saved, creating an all-encompassing budget is a brilliant way to start 2019. This budget will give you clarity and is the key to achieving all your financial resolutions. 

Your budget should tell you how much you’re earning, saving and spending. If you’ve been diligent about creating your budget, you should be able to see where every last dollar goes. Even the cup of coffee you buy at the cafe before you get to work should be included.

Knowing what’s really going on with your money gives you the power to make the right changes to the amount you save and spend. For example, if your budget tells you that you’re buying 10 cups of coffee a week, you can make an informed decision to reduce the amount you buy. You might even decide to make your own at the office so you can direct that money towards your savings.

Pay off your credit cards, one at a time

Trying to pay off a pile of maxed out credit cards is like trying to climb Mount Everest without a pickaxe, rope, or safety equipment. The terrain is uneven, icy, slippery and difficult to get a hold of. It’s hard, but it should be one of your top financial new year’s resolutions because getting out of debt is the key to financial freedom.

As you already know, credit card debt comes with interest. The larger your credit card debts, the more interest you’re charged and the deeper into debt you go. 

The trick to paying off credit card debt is to work on a single credit card at a time. Pay off your credit cards in small increments, one by one. Set goals to pay a certain amount at regular intervals, either weekly or monthly. 

Stay consistent and you’ll find yourself out of credit card debt sooner than later. And if your credit card spending is really out of control, you’ll need to ask whether the purchases you make are worth more than your goals.

Always be saving

While you’re working hard at eliminating your credit card debts, you should also work at saving more on a regular basis as one of your new year’s resolutions.

It’s a fact of life that there are rainy days. Putting aside a healthy chunk of cash on a regular basis will mean you’re always prepared for them. As you save more and more, you won’t just be covering yourself for your rainy days. Eventually, you’ll have enough for all the fun things in life too.

To save well, have a solid, realistic number of how much you want to save in your head, possibly 10% or 15% of what you earn. Decide how often this money gets set aside, whether it’s weekly or monthly.

Lastly, under any circumstance, do not spend your savings!

Have a clear vision of your future

Having a clear vision of your future is one of the strongest ways you can make sure you achieve financial fitness in 2019. This means as a new year’s resolution, you need to decide what this looks like to you. 

Does it mean living in a bigger house free of mortgage stress? Does it mean travelling to the most exotic locations in the world? Maybe it means getting married to your better half in an epic wedding with hundreds of your best friends. Or giving your children the best education you possibly can.

It might even be to just pay off those pesky credit card debts and relax. 

Whatever your vision is, you need to have this clear and solid in your head. Your vision of the future is like a roadmap. If you can see it clearly enough, it’ll help you stay financially disciplined and on track towards financial freedom.

Stick to your plan

Overall, the trick to fulfilling your money-related new year's resolutions is to be clear about what you want to achieve financially.

Have a budgeting plan and stick to it -- no matter what happens. Eliminate your debts, save consistently and keep your mind's eye focused on the brightest version of your future. Sticking to the plan, even with the smallest baby steps, will see you achieve financial freedom.

Remember, slow and steady wins the race!

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