Making Your Financial Resolutions For 2016
With less than a month left until the New Year, it’s time to start thinking about those New Year’s resolutions. When it comes to resolutions, most people think along the lines of “I need to lose some weight”, “I should drink less”, “I want to exercise more” etc…But what about financial resolutions? If you want to be smarter with your money in 2016 and even save a lot, then here are three things to think about:
- What were your saving habits this past year?
Even if you’re earning more money than you ever have before, you can’t begin accomplishing your financial ambitions if you spend all of your money. It’s easy to get into the way of thinking that if you earn more you must spend more, but that isn’t going to help you in the long run, is it? One of the best ways to save money is to make your saving automatic. Have a percentage of your income automatically go into a separate savings account or savings plan. That way you can still splash out if you feel like it, whilst knowing you still have savings.
- How financially responsible have you been?
As you are probably aware late payments not only generate annoying fees and interest charges, but they also play a large role in determining your credit score! Have a think about how responsible you were in this aspect.
A poor credit score could mean higher interest rates on loans or disqualification from loan programs, higher insurance premiums, or even lost job opportunities. Therefore, being responsible is the next big step to accomplishing your 2016 financial goals. Again, bills can be paid through automatic or periodic payments you can set up. Without access to the money, you can’t spend it.
- What position are you in debt-wise?
Finally, you may have some debt at the moment. Although sometimes it can’t be helped, debt can hurt your credit score in a significant manner. (It can also help – if it is managed correctly). But if your debt is getting out of control, if you can’t currently pay off your debts, talk to someone and address the situation now, before it gets out of control and negatively affects you and your credit rating!
- What about longer term planning / retirement?
Do you know what your current longer term situation is. Do you have enough in your pot to see you through the retirement you want. It is never too late to do something about this, so time to review and speak to your IFA about your goals and how to get there.
We wish you the best of luck with your financial dreams in 2016!
Tweet us @MACFinancial