Many of us begin reflecting on the past twelve months when the year comes to an end. When the new year starts, many of us refocus and form a list of new goals and aspirations to make the new year even better than the last one. Believe it or not, one of the most popular New Year’s resolutions is not dieting, breaking a bad habit like biting your nails, but actually, personal finances.Â
Now I know what you’re thinking, anything related to accounting or finance seems really boring and difficult. It is never really easy and simple, but at the same time it’s not easy to stick to any New Year’s resolution either. A good strategy to consider is making your goals simple, achievable and measurable. This way you will have the most chances of sticking to it and being consistent! Below I found some simple financial New Year’s resolutions for you to begin.Â
“Money looks better in the bank than on your feet”
www.money nuggets.co.uk
Start Building Your Emergency Savings AccountÂ
Realistically, as a college student this may seem unnecessary. But since financing is one of the first steps to becoming truly independent, thinking about how to look after yourself in emergencies is important. In times like these, most people panic and struggle to figure out funding for expensive emergencies. If you want to find some ease in emergency situations, an emergency fund is a must. As a college student, I am not saying put aside hundreds of dollars. Little amounts go a long way especially since this plan is a long-term financial plan. In an emergency, I am certain in a moment of need, $200 from this emergency savings account will go a long way!Â
Say Goodbye to Fancy Lattes and Monthly Nails!Â
Not everyone can relate to this, but if you have an activity that costs you more than it’s worth, perhaps it’s time to say goodbye to it! If you have a habit of buying expensive fancy lattes before class or getting your nails done with nail art every month, quitting could help you save a chunk of money. Now I know what you’re thinking, I am not saying you need to entirely stop getting your nails done and you can never spend money at the nail salon ever again. I personally could never do that… however, I won’t choose to have nail art every month but rather for special occasions like my birthday or the holidays. That way, you limit yourself and save on small expenses that add up in the long-run. Every now and then we do need to have a glam day and feel good when getting a mani and pedi. Overall, take a quick look at your small current spending habits and see if there is anything you could quit without impacting your lifestyle too much.Â
Save with a Friend!Â
Similarly to starting a fitness journey, dieters from MyFitnessPal.com state that users who share their food diaries with a friend lose twice as much weight. The same can be said for saving! When we know we have the responsibility of doing a task with someone else, we are more likely to stick to our resolutions—it’s pure psychology! So first things first—choose a friend who wants to save similar financial funds as you and a similar relationship with money as you. You can both compare the details and goals of the plan and meet up weekly to review your progress.Â
Tip: Download a money management app called “Mint” to help track your personal spending, find your weaknesses and enable you to be accountable alongside your chosen friend.Â
WRITE WRITE WRITE!Â
The biggest tip I can give you is to write it down. In a world where everything is digital and people go without touching a pen and paper for days, writing your New Year’s resolution on paper seems to make it “official official”. The act of writing your financial resolutions on paper will psychologically imprint them on your mind and make it feel more of a burden when you do not meet those goals. I personally love writing my goals and aspirations down and having them on a sticky note on my mirror or my bedroom walls. This way, I notice and see them every single day and I am reminded.Â
Set Measurable GoalsÂ
What is the point of setting goals that are amazing, but yet are unrealistic? Ensure your goals help you stay on track instead of setting a goal on something that is too high out of reach at the moment. Rather cut spending by a little amount every month in order to stick to it.Â
Overall, the best possible advice I can give you, as a college student trying to form a healthy relationship with money habits this year, is to have SMART goals. Goals that are specific, measurable, achievable, relevant and time-based. Financial goals may not seem as fun but the more money you save, the more bags and shoes you can buy in the future (LOL).