Most of us like to make resolutions, maybe of picking up good hobby, quitting up smoking or drinking or a financial resolution like buying a house or a car or paying off a debt. However, research shows that only around five percent of people are able to keep up with their resolutions. Christine Long in The Sydney Morning Herald tells us how to really achieve the financial goal that we have set up.
What are the right approaches to stick to a resolution and make it work?
Time is the first thing one needs to invest into a resolution. There should be a thorough look into one’s finances to figure out areas where one can cut down and save on money. Enrolling into some financial planning course or seminar are also great ways to improve financial knowledge that can help a person, in a longer run.
Paying off a personal debt like a credit card debt is also a great boost to strengthen one’s resolution. A debt can be converted into a personal loan and paid off in a set schedule or a part of one’s monthly pay can be directed towards the debt, every month, to clear it.
Saving more is the next approach that is suggested by the writer.Ten percent of an individual’s income is the minimum that should be kept aside for savings.
Protecting oneself by means of adequate insurance cover is also very important. An emergency fund with minimum three months salary is also an option.
Finally, preparing for retirement is also a very important boost to sticking to one’s financial resolution.
How to track progress?
A person can easily get off the track if he or she is not monitored. It is therefore advisable to have a friend or family or a financial advisor to keep track of developments and question in case if things are going off track.