5 Realistic Financial Resolutions to Set and Achieve in the New Year

In one of our Instagram live streams, Jemima Osunde, a Nigerian actress said “The first quarter is what sets the pace for the new year, so you need to be extremely careful about how you plan your finances”. 

We can all agree that setting resolutions generally is easy, but being focused to achieve them is vital. Before making use of the highlights in this article, I will like to mention that you should calculate your net worth first, it will set you on a clear path when you start writing your financial resolutions.

However, what makes an achievable new year resolution is beyond writing and staying focused, especially when it comes to our finances. A good financial resolution must be Specific, Measurable, Attainable, Relevant, and Time-bound (SMART). Here are the 5 realistic financial resolutions that align with the SMART goals.

Revise Your Saving Goal

It is commendable that you were able to save some money in the past year. If we are going to be realistic, inflation had a hold on almost everyone’s savings (and probably still has). Therefore, a part of your financial resolution should have you revise your savings. 

Would you still consider saving in your local currency? Would you increase the percentage you have allotted to your savings? If you asked me those questions, I would nod “yes” to the latter, and “no” to the former. 

Another way of saving and staying true to it is to put up a challenge. For instance, you can save $1 per day until the rest of the year, which is easier to accomplish on the Bitnob app.

Start a Retirement Plan

My former perspective about retirement used to be my parents’ stipulated 35 years on their government jobs. I was certain that there would be huge amounts of money waiting for them after their services.

Gradually, I realized that it is not that simple. Retirement plans should not be dependent on what the government gives, it should be an intentional financial plan that is solely up to you. Irrespective of how much you earn, you can start putting some amount away for investment. 

Notice I did not mention savings? That is because investment comes in diverse ways. It could be a side business that its returns could serve as your retirement plan, or going full-on reliable assets like bitcoin. 

Yes, bitcoin! $1 worth of bitcoin every day is a good way to start your investment. If you could do it for 5 years, you have set a golden retirement for yourself.

Pay Your Debt or Have the Plan to Pay Sooner

Setting a realistic plan to pay your debt should be at the top of the list of resolutions. As far as I am concerned, accumulating debt on debt will not allow financial headway. The sooner you clear your debts, the better. 

I don’t want to overlook the fact that most business owners depend on loans to have their businesses stay afloat. If you belong to the business category, there is a need for frequent evaluations of the cash flow. This way, your business seems profitable and loans become easier to pay.

Boost your Income

It’s fine if your current income can not serve your financial goals. You can get creative and try out new things that might provide extra revenue as one of the finest strategies to increase your income. It's important to remember that not everything will turn out the way you hope it will.

There are several side hustles you could venture into this year that would bring tangible amounts to your pocket. These include online coaching, Youtube content creation, and anything that solves problems (they are proven to have higher returns).

Create an Emergency Plan

Do you want to have a long list of new year's resolutions? Creating an emergency plan should be in your top 3. 

In 2020, we all experienced the profound effect of the pandemic. Most people lost their jobs, health conditions worsened, people lost their lives, and a bunch of other unfortunate events. If nothing has moved us enough to start a financial emergency plan, the year 2020 was a life lesson in itself. You can start by saving a percentage of your income monthly. 

I bet we are all aware that every paper currency is devaluing, but we as Africans can find the situation advantageous. The US dollar still has an edge over our local currencies. Therefore, saving in USD will help keep your money safe from local devaluation. So that by the time you need to cater to an urgent need, devaluation and inflation wouldn’t have any negative effect on you. Click here to learn more about saving in USD on Bitnob.

Financial Resolutions Takeaway

According to Insideout Mastery, about  9% successfully keep to their New year’s resolutions, and 43% of people are expected to quit working on their New Year’s resolutions before the end of February. While these percentages are not encouraging, they are mostly true. It is easy to draft your goals but maintaining the zeal to make you hit the goals is major.

Before I round up this article, I’d like to point out factors that cause new year resolutions to fail (they are applicable to any aspect including your finances);

• Distractions that cause objectives and priorities to change
• Too many goals to achieve at once
• Being stressed and occupied
• Having high expectations for success

There would be distractions for sure. You just need to heighten your discipline and take things slow. It is the new year, and you really don’t want to hoard this article from your friends. Share it with them. They will find it helpful.