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Financial Resolutions for the New Year
- Financial Literacy
- By InLife Sheroes
- Nov 13, 2024
- 0 Comments
As 2024 comes to a close, it’s the perfect time to reflect on your finances and the milestones you’d like to achieve next year. What better way to start 2025 than with financial resolutions that will help you create a secure future?
Although resolutions are generally quite challenging, the journey feels fulfilling. It’s all about knowing you have the ability and freedom to take charge of your life. Here’s a guide to help you set impactful goals for 2025 and beyond.
Top Financial Resolutions
1. Build an Emergency Fund
If one thing is certain in this world, it’s change, it's the unexpected. An emergency fund ensures you’re prepared for surprise expenses—whether it’s for medical bills, home repairs, sudden job loss, or the death of a relative. An emergency fund is your financial safety net and can do wonders for your peace of mind. Strive to save three to six months’ worth of living expenses. You can start by setting aside a small amount every week or month and keep that money in a separate savings account, which should remain untouched unless there’s an emergency.
2. Pay Off Personal Debt
Paying off or reducing personal debt at the very least should be a priority for many in 2025. Debt can feel like a burden, holding you back from your other financial resolutions. The key is to start with debts with the highest interest rates as quickly as possible. The less interest you pay, the more money you can set aside for your future. Consider adopting the debt snowball or debt avalanche method. As you chip away at your balances, you’ll feel lighter and more in control. Remember, every small step you take toward reducing your debt is a step closer to financial freedom. You just have to stick to the plan.
3. Check and Improve Your Credit Score
Your credit score determines how likely you are to pay off a loan. Banks, credit card companies, and other lending institutions use it as a basis for approving any loan or credit card application. It shows how many accounts you have in good standing. Check your credit report for errors and dispute any inaccuracies. Additionally, make timely payments, keep credit utilization low, and avoid opening too many new accounts at once.
4. Cut Unnecessary Subscriptions
To keep ourselves entertained and make our lives more convenient, we sign up for subscription services. With so many options, it’s easy to sign up for more than we need. We often forget we even signed up for those services in the first place! Review your monthly expenses and cancel subscriptions you no longer use or value. Canceling just a few can free up funds for other more important things, such as savings or debt repayment.
5. Insure Yourself
As a Filipino woman, you may be responsible for family obligations. You may be the breadwinner and primary caregiver. In the unfortunate event of your sickness or passing, health and life insurance protects your loved ones. It provides a safety net for your family during times of financial uncertainty. Evaluate your current insurance policies and ensure they provide adequate coverage for your needs. If you don’t have insurance, it’s time to get insured! Knowing that your family is financially covered gives you peace of mind, even if you are not there for them.
6. Start Investing
If you’re not investing yet, make 2025 the year you start! Investing is a great way to grow your wealth over time. It comes with its own set of risks, so begin by educating yourself about different investment options such as stocks, bonds, mutual funds, and real estate. Start with small amounts in a diversified portfolio. Investing is about the long game, so don’t expect high rewards immediately.
7. Start Planning for Retirement
While it’s important to live in the now, planning for the future is just as crucial too. Many Filipinos overlook preparing for retirement because they think they still have plenty of time to worry about it later. The earlier you start, the better. Consider opening a retirement savings account or increasing contributions to an existing one. Ask your employer if they have sponsored plans or personal retirement funds. Even small contributions can grow over time due to compound interest, setting you up for a comfortable life once you reach old age.
8. Talk to a Financial Advisor
Setting and achieving your financial resolutions is easier if you have someone to guide you. A professional financial advisor can provide insights tailored to your unique situation and goals. Whether it’s budgeting advice or investment strategies, having expert support can make all the difference.
Make Your Financial Resolutions a Reality
Let’s embrace these financial resolutions with optimism and determination! With the right support network, you will feel more empowered to improve your financial well-being with confidence and purpose. Join the InLife Sheroes community so you can hear inspiring stories from like-minded Filipinas who are transforming their lives and businesses.
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