Make Financial Security Your New Years Resolution
We’re coming to the end of the year and chances are that you’ve built up a little debt by now, especially considering the sheer amount that the average person spends throughout December on festivities and gifts in particular. So, if you’re looking for some sort of New Years Resolution to make, then you might want to focus on being a little more financially responsible in the new year and providing yourself with a little more financial security. Here are a few reasons that you might want to consider doing this and some tactics that you can try to achieve it!
Why Focus on Financial Security?
While money shouldn’t be everything in your life, there is a little sense in the saying that money makes the world go round. If you don’t have enough money to meet your financial commitments and responsibilities, you can experience a whole lot of stress. If you don’t keep up with rent or mortgage payments, finance plans, and other financial agreements, you could find yourself taking out loans or credit cards to keep up, and you could accrue a whole lot of debt along the way. These are just a few of the common mistakes that can mess up your finances! By ensuring that you don’t find yourself in this situation, you can reduce the amount of stress and negativity in your life and lead a better quality of life in general!
Becoming Financially Secure
There are a few different steps that you can take in order to give yourself better chances of being financially secure. Here are a few to consider!
Living Within Your Means
The first step towards financial security is to live within your means. Figure out your means by creating a budget! The first step to achieving this is to note down your salary after tax, national insurance, and other costs have been deducted. Then deduct other necessary expenses, such as payments that keep a roof over your head, your property warm and running, and food in your stomach. The figure that is left over is your disposable income. Never spend more than this amount. This will prevent you from slipping into debt in the first place!
If you’re feeling particularly responsible, you can dedicate a certain amount of your disposable income into a savings account. This will ensure that you have some money to fall back on if you need. Take a look at all of the different accounts that are available to you in order to find the one with the best interest rates. This will benefit you more in the long run.
As you can see, financial security is essential if you wish to lead a full and fulfilling life. Hopefully, the above steps will get you started on the right path as 2019 starts out!