The beginning of the year is when we typically re-evaluate our priorities. We resolve to make better decisions across various aspects of life- exercising more, eating healthier, prioritizing time for our hobbies and so on. For many of us, getting finances and money in order ranks at the top of our new year’s resolutions. That said, the mechanics of how we’ll do this and where to begin is uncertain.
Here’s a round-up of basic money management resolutions that you should consider keeping in 2023:
1. Stop living from paycheck to paycheck
Budgeting is an important tool to manage money effectively. By creating a budget, you can set financial goals, prioritize expenses, and identify areas to cut back on spending. Regular budgeting can also help you identify and address financial issues early on before they become larger problems. A host of platforms and tools are now available if you want to track and manage your expenses and you should consider using them. If you’re looking to track EMI’s and loan repayments, you’re in luck- click here for calculators that can help you out.
2. Automate your bill payments
Keeping track of your bills and dates manually is passe. You can leverage solutions that help you automate and manage multiple bill payments. By using Bharat Bill Pay System (BBPS) on apps like CRED, members can make recurring payments on utility bills including electricity, telecom, water and gas, education fees, municipal taxes, FASTag recharge and much more. Even better, CRED and BBPS have launched an assured rewards campaign from 12- 16 Jan 2023. Members paying bills on CRED can win upto INR 10,000 as cashback.
3. Understand how taxes work
Learning about taxes can help you save money and avoid penalties. Understanding tax laws and regulations can help you claim all eligible deductions and credits, which can lower your overall tax bill. By understanding how taxes affect your income and investments, you can make more informed decisions about spending, saving, and giving to charity. Hence, knowledge of taxes can help you plan for the future and make better financial decisions.
4. Grow your wealth through investments
Investing can be a great way to grow your money and achieve long-term financial goals. It allows you to take advantage of compounding for higher returns. That said, investing can be pretty daunting for newbies. If you’re concerned about how to get started, it might help to get your toes wet with P2P investment products, which offer you immediate liquidity and returns that are higher than typically fixed deposits. Spend time learning about products, services, and tools that make investing easier and work towards diversifying your portfolio.
Remember, it’s never too late to start making changes. By taking advantage of the tools and solutions at your disposal, you’re setting yourself up for a financially successful 2023.
Rajiv Talreja founder of Asia’s Largest MSME Business Coaching Company – Quantum Leap Learning Solutions Pvt Ltd also shared six financial resolutions for 2023.
Evaluate and track your current expenses
How you are spending your money is something everybody should track and observe where there are wastages and leakages. Where are you spending money unnecessarily? What are the things that are depriving you of meaningfully using your money? More than earning money, evaluating where your money is going is more important. When you track your expenditure, it gives you a holistic view of your life, your spending habits and where you can cut down.
Start the habit of saving
Saving is truly an underrated habit. People need to understand that if you cannot save money TODAY, money won’t be able to save you tomorrow. It’s not even about the money. It is about the habit of keeping aside some amount of money every single month. The habit of saving is something to inculcate even in your own immediate family. Teach your children to save at a young age so that they can reap the benefits of this habit when they get older and this habit stays with them.
Learn the skill of investing
Every individual in today’s day and age needs to create multiple sources of income. To do that you need to gain knowledge about different asset classes, be it real estate investment, mutual funds investment, equity investments, etc. So, learn and then invest and not just because some random financial influencer on YouTube is telling you to buy a particular stock or invest in crypto. Understand every asset class, understand the risks and rewards behind each asset class and then make decisions based on your portfolio and your ability to manage risks. So, start investing if you haven’t already so that your money can start working and growing for you.
Engage in meaningful recreation
At the end of the day, we are human and we all need to experience this world. But a lot of people, in the name of recreation, spend a lot of money just for social validation but not something that gives them true joy. So, make a financial resolution this year listing the ways in which you can genuinely experience your money, doing things that give you meaning and not for social media likes and validation on Instagram. List your areas of meaningful recognition. People bother so much about other people’s judgements and opinions that they forget their own true selves and resist doing things that actually give them happiness. Travel if you enjoy travelling, not because it looks cool on Instagram reels!
Giveaway 5% in charity
Enhance the power of your karmic balance. Empower and uplift the lives of the less fortunate. It is a great way of giving back and expressing gratitude for all the privileges we have been blessed with. When you give back to people, with the money you earn fills you up with a feeling of doing something good for someone out there. Choose a charity that speaks to you and contributes on a regular basis.
Upskill and uplift your own life
To be able to do all of this, save, invest, contribute, and experience recreation, the last resolution is the most important. To be able to afford all this, make a resolution to upskill yourself in your career or business skills which is your primary source of income. Unless and until you invest in your own learning and education, for your job or your business, your source of income will not grow. So, upskill for your own income growth so that you have more disposable income to do all the 5 things mentioned above.
So, here’s to creating resolutions that make sense financially and make your 2023 a great ‘money’ year.