‘Tis the season to make New Year’s resolutions. Unfortunately, 80% fail to receive their offers. Despite this alarming statistic, the tradition of sharing “firm decisions to do or not to do something” is still a popular activity in preparation for the New Year.
As you begin to visualize and create your vision board, here are four financial new year resolutions to avoid making and suggest how you can actually achieve the goal.
Avoid these financial new year resolutions
1. Debt free
The average American has about $ 40,000 in personal debt, excluding mortgage loans, with average student loan debt of over $ 35,000. Debt relief is an effective goal in life. However, it usually takes more than a year to complete this feat. Dealing with a mountain of debt accumulated over many years or decades may take longer than anticipated.
Instead of establishing an ambiguous debt independence resolution, iFocus on the specific loan (s) for the new year or how to deal with it or pay off or down. The achievement of paying off every debt will encourage you to continue your journey to debt relief, especially during rough financial times.
2. Cold Turkey Spending Cut
The sudden and complete way to go “cold turkey” usually makes people feel deprived and defeated if they fail, especially for the spenders. When this happens, many people get angry and cheat or “kill the turkey” and fall apart completely.
Instead of making an empty “cold turkey spending cut” resolution, R.Reduce excessive spending from every day to a few days. Once you’ve made a habit of reducing your excessive spending behavior to just a few days, add one or two more days to your “low spending” days. You may find that you do not need the things you are spending as much as you were thinking.
You should convert excessive expenses into behavior that will improve your financial situation. Eating every day, for example, is the major budget buster. Instead of eating out every day, the meal is two to three days a week for your breakfast, dinner, or lunch. Or, instead of hitting the vending machine at work, buy your favorite snacks or drinks in bulk and stash them at your desk. Every time you take a snack or drink from your stash, mix the money you spend into a savings jar. When the jar is full, dump it into the savings account or use something to separate it.
3. insurable savings target
Hundreds of thousands of dollars saved for a rainy day, luxurious vacation, or an excellent business opportunity are ideal. However, setting a savings goal of $ 100,000 a year when your salary is $ 60,000 or less can set the bar slightly higher. If you do not reach the goal, you may feel defeated. Having goals that are a challenge is great, but setting goals that may be unattainable is emotionally dangerous.
Instead of setting insurable savings offers, S.Et a smart (specific, meaningful, attainable, realistic and time-driven) amount that requires a positive change in behavior and discipline. Start with a savings goal of at least $ 500 to $ 1,000 or one month of your salary. Once you accomplish that goal, set a new savings goal that will require more effort. A small savings goal can become a sizable pillow for your future and present financial freedom.
4. Quit Your Job to Start a Business
Hating your job is not a good reason to quit your job to start a business.
Not liking or not being satisfied with your job may mean you need to find a new job. However, if you want to start a business, continue your work during your entrepreneurial learning curve. Your job is the first corporate sponsor of your business. Your salary will not only pay the bills and maintain your lifestyle, but it will help you fund the necessary business startup, formation and coaching expenses.
Instead of setting your boss on fire to start a business resolution, start a side hustle. to become a “dualpreneur “ (Employee and Entrepreneur). Take advantage of the benefits of your job and steady income flow when you develop your side in a profitable legitimate business that can eventually surpass or change your salary.