{"id":70752,"date":"2022-01-17T07:26:30","date_gmt":"2022-01-17T15:26:30","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=70752"},"modified":"2023-01-18T12:32:20","modified_gmt":"2023-01-18T20:32:20","slug":"8-financial-resolutions-to-adopt-this-year","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id70752-8-financial-resolutions-to-adopt-this-year.html","title":{"rendered":"8 Financial Resolutions To Adopt This Year"},"content":{"rendered":"<p><a href=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2022\/01\/New-Years-Eve.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-70753\" src=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2022\/01\/New-Years-Eve.jpg\" alt=\"\" width=\"395\" height=\"296\" srcset=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2022\/01\/New-Years-Eve.jpg 500w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2022\/01\/New-Years-Eve-300x225.jpg 300w\" sizes=\"auto, (max-width: 395px) 100vw, 395px\" \/><\/a>There&#8217;s genuinely no better way to kickstart the new year than with a few motivational resolutions. And while most of us have listed resolutions like getting fit, eating healthier, and other common goals, deciding to make a few financial resolutions is also a wise choice.<\/p>\n<p>Embracing the concept of pursuing financial freedom will prove rewarding, even though the first few months will be pretty challenging. Just as you would persist at the gym to accomplish your physique goals, you will need to persist in adopting healthy financial habits.<\/p>\n<p>Nevertheless, we&#8217;ve listed some practical financial resolutions for you to consider. Walking into the new year with these goals will surely bring about tons of prosperity.<\/p>\n<p><strong>Open An Emergency Savings Account<\/strong><\/p>\n<p>An <a href=\"https:\/\/lenpenzo.com\/blog\/id28190-3-reasons-to-have-an-emergency-fund-that-we-dont-talk-about-2.html\" target=\"_blank\" rel=\"noopener\">emergency savings<\/a> fund is a lot more critical than most of us realize. While this type of financial preparation will help you cope with things like unplanned medical bills, career changes, and even lawsuits, it&#8217;s also essential to have when it comes to peace of mind.<\/p>\n<p>So, even if you are saving some money every month, you should still consider making room for an emergency fund. The type of account to opt for must be easily accessible, so it&#8217;s best to keep these funds separate from everything else.<\/p>\n<p><strong>Don&#8217;t Neglect Your Tax Obligations<\/strong><\/p>\n<p>Most of us can&#8217;t help but cringe at the mere thought of taxes. Unfortunately, there is no way around paying your income taxes, and if you have fallen behind or overlooked this vital responsibility, you are probably concerned about hefty monetary implications.<\/p>\n<p>Fortunately, you can find free tax relief services to get back control of your finances. Even if you are already in hot water with your tax situation, these services will assist you massively by ensuring your taxes are paid off more comfortably.<\/p>\n<p>But with that said, it&#8217;s best to adopt the resolution of prioritizing your taxes and monitoring your tax compliance every month. This extra effort will help you obtain financial freedom and prevent the build-up of a debt burden in the form of penalty fees imposed for nonpayment of tax.<\/p>\n<p><strong>Make A Budget And Review It Often<\/strong><\/p>\n<p>It&#8217;s crucial to have a monthly budget that lists all your expenses, allows room for savings, and tracks your spending habits. Even though it will definitely take some time for you to create a detailed budget, modifying it after that won&#8217;t be too much hassle.<\/p>\n<p>Once you have a budget, it&#8217;s also vital to develop a habit of reviewing it often. You&#8217;ll need to track your spending, and in doing so, you&#8217;ll be able to stretch your funds further and make better financial decisions. Eventually, doing this will help you become fully aware of your financial habits, both positive and negative.<\/p>\n<p><strong>Save Something Monthly<\/strong><\/p>\n<p>Far too many of us shrug off the importance of saving because we assume we don&#8217;t have enough funds available to save at all. However, even if you can only save $10 a month, you should. Instead of ruling out the possibility of saving because you can&#8217;t put a massive lump sum aside, you should consider that small amounts add up substantially over time.<\/p>\n<p>Adopting the habit of saving every month, even if it&#8217;s only a small amount of money, is enough to transform your financial health and help you obtain financial freedom sooner. But with that said, your general savings should be held separate from your emergency funds.<\/p>\n<p><strong>Start Investing<\/strong><\/p>\n<p>Investing is not something only the wealthy can do; several investment opportunities don&#8217;t require upfront lump sums. Some investments are also low-risk, which is best for beginners.<\/p>\n<p><a href=\"https:\/\/www.investopedia.com\/financial-edge\/0212\/5-advantages-to-investing-in-your-20s.aspx\" target=\"_blank\" rel=\"noopener\">Investing<\/a> is more than saving, as you can build wealth a lot easier if you invest in the right opportunities. That said, consider investment opportunities that allow you to decide how much you want to set aside, and start as small as possible so that you can monitor gains or losses. Monitoring your investments is crucial.<\/p>\n<p><strong>Eliminate Your Debts<\/strong><\/p>\n<p>Debts are a burden mostly because they come along with substantial interest. As a result, you never pay back the amount you received, but you will also be liable for a lot of interest.<\/p>\n<p>Unfortunately, neglecting your debts will increase the relevant interest. So, making a point of eliminating your debts this year is an excellent choice. You can consider the snowball method, where you should start paying off small debts while paying the minimum to more enormous financial debts. However, the avalanche method also encourages the larger debts to be handled before the smaller ones.<\/p>\n<p><strong>Avoid Credit<\/strong><\/p>\n<p>Paying off your debts will be a never-ending story if you continue to rely on credit and lenders. Instead of doing this, you should focus on paying off your debts and gradually reduce your credit reliance until you are able to live without it comfortably.<\/p>\n<p>It will take some time to get to a point where you no longer have debts, and your credit cards start gathering dust, although adding this to your new year&#8217;s resolutions is an excellent start. When it comes to credit, consider store accounts, smartphone contracts, and everything else you pay monthly with interest.<\/p>\n<p><strong>Cancel Subscriptions<\/strong><\/p>\n<p>These days, we all have a ton of monthly subscriptions, from gym contracts and streaming platforms to music apps and so much more. However, most of us pay more subscriptions services than we actually use, and even though these amounts are typically small, they add up. So, if you have any subscriptions that you don&#8217;t use, you should cancel them. You could even devote these extra funds towards saving or investing.<\/p>\n<p><strong>The Bottom Line<\/strong><\/p>\n<p>Adopting healthy financial habits will take some time, just as it does, to start eating healthy. But, if you persist on your journey to financial freedom with practical financial resolutions, you will be rewarded enormously later down the line. So, regardless of your financial situation now, you should evaluate your spending habits, start saving, think about investing, and make room for more savings where possible. These actions will inevitably become habits that will benefit you more than you might realize now.<\/p>\n<p style=\"text-align: right;\"><small>Photo Credit: stock photo<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s genuinely no better way to kickstart the new year than with a few motivational resolutions. And while most of us have listed resolutions like getting fit, eating healthier, and other common goals, deciding to make a few financial resolutions is also a wise choice. Embracing the concept of pursuing financial freedom will prove rewarding, [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":70753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","pmpro_default_level":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[458],"tags":[],"class_list":{"0":"post-70752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-credit-debt","8":"pmpro-has-access","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>8 Financial Resolutions To Adopt This Year<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lenpenzo.com\/blog\/id70752-8-financial-resolutions-to-adopt-this-year.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"8 Financial Resolutions To Adopt This Year\" \/>\n<meta property=\"og:description\" content=\"There&#8217;s genuinely no better way to kickstart the new year than with a few motivational resolutions. 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