Make getting your finances in order your New Year’s Resolution
Now that a New Year is upon us, the making of a New Year’s resolution to get your finances in order could be very timely indeed. Of course not only is it a new year but also the start of a new decade. The twenties no less. The 1920s was a glamorous decade known as the roaring twenties.
The Roaring Twenties was a decade of economic growth and widespread prosperity, driven by recovery from wartime devastation and deferred spending, a boom in construction, and the rapid growth of consumer goods such as automobiles and electricity in North America and Europe and a few other developed countries such as Australia. Will we see a repeat of that decade? Who knows? Only time will tell.
Whether the decade becomes a repeat roaring twenties or not, why not make it your personal roaring twenties? Make it the decade when you really get your finances working for you. So what should you do? Well here are 10 quick tips for starters.
- Save 10% of what you earn
- Invest your money into shares through a fund such as an OEIC, investment trust or an ETF
- If you are a member of a company pension scheme, pay in the maximum each month up to how much your employer will match your contributions. Ask for salary sacrifice if offered.
- Pay off all unsecured debts (overdrafts, credit cards and personal loans). Cut up your credit card and throw it away.
- If you are homeowners with a mortgage, remortgage to a cheaper deal.
- Review your energy, mobile and broadband bills and change providers using a service such as Uswitch.
- Curb your discretionary expenditure by practising deferred gratification i.e. resisting the urge to buy and delaying any purchases so that you buy things with money you have rather than paying for items on a credit card. Also, only buy things that you need rather than what you want.
- Monetise your assets such as renting out a room in your house, renting out your car and renting out a parking space if you have a drive.
- Take up network marketing to generate some self-employed income in your spare time.
- Eat out and drink out less, cut down on those takeaways and those expensive coffees.
Adopt the above habits and you will truly have your own roaring twenties by putting yourself on the road to financial independence early in your life. You know it makes sense.