Five trusted tips for succeeding with your 2015 financial resolutions

Simple tips to make you financially stronger.

14:45 05 January 2015

Many individuals will begin the year 2015 with many financial resolutions. Below are five tips for financial success.

1.    Set reasonable goals. “I have to save cash” is not an objective. However, “I have to save £50 weekly” is. “I need to save £50 every week to purchase a car worth £5,000 in a span of 100 weeks” is a precise and measurable goal. If the goals you make are clear and realistic, your chances of succeeding are higher.

2.    Create a solid plan to help you achieve your goals. If you want to have £300 worth of saving at the end of the month, you need to plan well. Create a list of expenses that can be reduced or find opportunities to grow your income real fast. A goal set without a plan is not a realistic one.

3.    Make a personal budget to reach your goals. A budget need not be fancy. You can use your computer or a pen and paper to write it.  Budgeting entails a list of the monthly income and expenses. The list will help you identify what you can reduce.

4.    If you are currently in debt, create appropriate plans to settle them. All financial experts will advise you to have a saving plan. However, when in debt, saving is not your main concern. You priority should be paying off the debts.  Begin by listing all your debts, note down the name of lender, amount of debt and the interest rates charged. Many individuals might not know their exact debt arrears until they put them in writing.  Then, arrange the debt in order of priority. Do not start repaying your smallest debts. On the contrary, start paying the debts earning the highest interests. If you pay a credit card charging you 25% interest, then you will save more cash than settling credit with an interest rate of 10%.

5.    Lastly, if your goal is to be free of debt and your budget does not serve this cause, research other options or consult professionals.