It's time to set a financial resolution, here's why

When you want to get in shape and lose weight, you might set a resolution to help you reach your goals. When it comes to your money, you can do the same thing.

Why resolutions work

Resolutions are tangible things that you can do to achieve your goals. They help you to get an idea of what you want, how to get it, and the path to achieve that success. This can make you realize that you are responsible for your own financial freedom. This responsibility is actually a good thing, and once you understand that your financial future is under your control, it can lead to a sense of hope and motivation to accomplish your goals.

Common financial resolutions

While a financial resolution can be anything you like, here are a few to give you some inspiration. When it’s time to pick a resolution for yourself, choose one of these, modify them or create your own to suit your goals:

Save money in an emergency fund
Pay off my credit card balance
Save money each month in a savings account
Start investing in the stock market
Open a retirement account

Setting and sticking to a resolution

There are a few things you can do to get into the mindset to start your financial resolution and follow through on your goals.

Think about where you’d like to be one year from now.
What type of changes do you need to make today to get there?
Think of two to three small financial changes that could help you.
Write down these changes. Keep them as a handy guide to refer to.
Do your best to stick to your resolution.
If you make a mistake, don’t worry. Just try moving forward on the right path.
When the year is over, look back at your resolutions and be honest about how you did.
If you didn’t stick to your resolutions, ask yourself why. If you did, congratulations, you can now start the process over again with even bigger goals.

It’s about more than money

On the surface, financial resolutions might seem like they are just about money, but in reality it’s more than that. These resolutions really help you think about your life goals and how to use your finances to achieve them. Whether it be saving for retirement, buying a house, starting a family, or even just saving up for a new video game, setting a financial resolution can help you get to where you want to go.

The sooner you get started with a financial resolution, the closer you are to reaching your financial goals. Don’t delay.

Disclaimer

The views shared in this podcast are for general information and educational purposes only and do not constitute financial, investment, legal or tax advice. Listeners should seek independent advice from a qualified professional before making any financial decisions. Emirates NBD Bank PJSC accepts no liability for any loss arising from reliance on the content discussed.