How to Be Financially Stable In 2020?
In 2020 it’s time to stop wishing that finances are better and do something about it by setting different types of financial goals. Unfortunately, this is something that most British people seem to be struggling with.
However, research has shown that the chances of success are more likely for those who have a clear financial plan and set realistic financial goals. To become financially smart in 2020, we recommend the following:
Write Down SMART Goals and Make Them the Basis of Your Financial Plan
Research has shown that creating a written financial plan is more effective than just thinking about or talking about your goals and that you’re 42% more likely to hit them if you just write down.
Having a list of financial goals that are SMART (Specific, Measurable, Assignable, Realistic and Time-Bound) is a great way to prepare for financial success.
Have Clear Financial Priorities
Money can be overwhelming: there are so many competing goals that you want to hit and so little time to hit the,. You can try using an Excel spreadsheet to track your expenses and savings, and occasionally write money goals in your diary. You should also try taking a closer look at how you can reduce your monthly expenses. The key here is to have manageable goals that you can stick to.
Don’t Carry Holiday Debt into The New Year
Before starting the vacation, make sure to create a clear financial plan and allow yourself to be successful in 2020. Your credit score, your debt burden, your account balance, your assets and your assets are important figures that you should consider when determining your starting line.
Stop Impulsive Shopping
Unsubscribe from email lists that always invite you to shop. If necessary, close your Amazon account. Those little extra expenses you make every month just because Amazon Prime offers free shipping doesn’t mean that money saved on shipping is going to become a saving in your account or go towards your emergency fund.
Do you really need everything you have delivered to you regularly? Think about it (really think about it). Instead, most people buy almost things they don’t necessarily need just because it is for sale or cheap.
Take a minute to look back through all of your recent purchases and then create aa list of your impulsive purchases, even if it hurts, and take steps to stop shopping like this and wasting your money.
Create an Emergency Fund
To save money, you have to avoid spending it first. Setting up an emergency fund is the best way to do this. You know how important an emergency fund is if you ever get into an emergency and had to borrow from others or use costly credit cards.
Avoid using a savings account linked to your primary current account as we all know how easy it is to transfer money back into the checking account and spending it. Make a promise to yourself that if you dive into this little pot of gold so that you won’t cheat and take some of the money back.
In conclusion, rethink your buying decisions in the new year. Take a close look at your budget and try to find ways to reduce your spending on things like multiple coffee breaks and eating out every lunch, you can save a significant amount of money saved each month in 2020.v