The following is an article “Setting Your 2019 Financial Goals” by Marc Primo.
Was 2018 a good year or a bad one as far as your finances are concerned? If it was the latter, then maybe it’s time to ring in 2019 with financial goals that will help ensure that you enjoy a better quality of life in the New Year and beyond.
Sticking to financial goals
A successful and wealthy taipan once said, “it’s not about how much you make but how much you save”. While this might sound debatable in capitalist America, the philosophy works for many frugal billionaires in Asia who lead simple and low profile lives.
The following are practical pointers and tips that anyone, regardless of income category, can apply in their daily lives to reduce expenses and increase savings:
Free yourself of debt — It might sound like a no-brainer but you’ll be surprised at how many people who lead seemingly carefree lives are riddled in fact with debt. Whether it is from a mortgage, an auto loan, or general credit card usage, being in debt means you are never fully in control of your expenses. Even if you have a stable job with regular income, a percentage of that must still be allotted to your debts—or else, you will just incur higher penalties and interest rates. It might be difficult to divert your funds to pay off your debts instead of going on that cruise or upgrading your home entertainment system, but the sooner you’re debt-free, the better.
Have an alternate income source — Just because you love your job and are comfortable with what you make doesn’t mean you can’t earn even more. Where there is free time, there is an opportunity to convert that idle time into cash. It might be in the form of a business investment or a part-time job related to a passion of yours that you can look at as a way to make extra money for an early retirement or to help pay off any debts you might have. Whatever it is, having dual income is always a good thing, regardless of your status in life.
Don’t keep up with the Joneses — Or in other words, always live within your means. For some, social media has become a platform that offers a false sense of reality for many people. Seeing your friends or acquaintances post frequent holiday photos or rolling in a new set of wheels every year should not make you feel inadequate or compelled to compete in any way. Always be content with what you have, and never forget the difference between a “want” and a “need”.
Cut down or give up the vices — Yes, this is always easier said than done, but if you’re serious about setting financial goals in 2019 and actually succeed in reaching them, then this is always a must-have mission. While it might not be a financial goal per se, it is a major obstacle or hindrance that stands between you and success in becoming more financially savvy in the New Year. If we stop and think about our vices, we all know the pleasure that we derive from it. But from a financial standpoint, vices are nothing more than a capital trap that ties up your money but provides no financial benefit. And gamblers, take note—the house always wins.