5 Financial Resolutions to Make Your Money Grow in 2023
It’s the new year, hun! Forget what your bad 2023 horoscope is saying and welcome the new year with optimism so you can make your money grow this year.
You may have that bucket list down, but what about your financial resolutions? Who will finance that super long list of things you want to achieve? And before you hit that X button, no, this blog is not just for beginners. Just as your closet needs spring cleaning, so do your financial habits and planning strategies.
Let’s make that “New Year, New Me” statement a reality by going over a few financial resolutions that can help make your money grow, with both best and niche practices that will make you eat procrastination for breakfast. We’re not promising to double that money in the next few days but we can get you to build that habit starting today.
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1. Start tracking your finances now!
Budgeting is important and we cannot stress that enough. Financially stable or not, tracking your expenses always comes in handy for any occasion. Having a budget is like being able to forecast the weather not just for the day, month or year but even for long-term plans. It ensures your well-being through thick and thin. It really is like having a lifetime partner without the immediate emotional benefits. If you keep your budget healthy, it will do the same for you and your loved ones even in times of emergencies.
Consider this: If you start budgeting regularly today, you don’t just ensure the proper management of your daily expenses but can actually be able to save or raise enough money to start your own small business that flames your passion in life or buy that house where you and your family can create the most memorable experiences in.
Hate Excel? So do we but it still is one of the best free softwares to track your finances on, especially if you want to ensure specific categories to your regular cashflows. However, if you’re like every regular Juana and Juan, you’ve most likely migrated to your smartphone to accomplish 80% of your lifestyle activities hence, a financial app is more suitable for you. Not to worry because we did a feature on that in this money management blog here.
Cross this financial resolution from your list now, luv!
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2. List down all your old investments to ensure the continuous flow of benefits
Don't skip ahead to number 3 just yet. You may already have investments you just don’t consider as such, which is why you don’t get the financial benefits that you deserve. Make a list of your investments and note down expenses incurred, dividends (terms of payout and total cash received), and other important items.
You may have bought an insurance policy in the past or even helped fund a restaurant with 25 of your high school friends and don’t really care much about it since your dividends are small, but these are actually considered investments. Another example that could be sitting just right under your nose is your condominium. Is your condo still serving your well? Five or ten years ago, this condo may have allowed you to express your freedom as you moved out of your parents’ house and started your adulting journey but nostalgia aside, it may just not be working for you anymore.
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3. Make new investments
Go fund your bucket list appetite yourself by taking a leap into investments. You’re never too young to start investing.
Crypto and all other stock market investments aren’t the only legit types of investments, and we won’t even begin to sell you in on those. For one, if you have extra funds (cash outside of your expenses for this month and your emergency fund), upskilling with a certificate course or even a master's degree is a worthwhile investment for your personal growth. For one, this can help you get ahead in your career but promotion or not, investing in education is never a loss. If you’re feeling a little less conservative, why not start a small business? It’s easier these days as you can even start one online with very little capital.
Just remember – all investments need your time, attention, and even your love. You must set aside time to ensure proper growth and this starts with checking its progress. If an investment is no longer working for you, you’ll be able to recalibrate your next steps to limit your losses. That’s why it’s important to go back to number 2 – listing down your investments and even tracking them so that they keep you happy.
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4. Tweak or switch investments to suit your new financial needs
Just as it’s never too old to start making your financial resolutions a reality, it’s never too late to change financial decisions that no longer give you good returns. You may still have that old blanky from birth to help you manage your anxieties at night, but when it comes to financing, there’s always an option that serves you better at every life stage.
As a follow up to number 2, do a cost benefit analysis for each item on your list of investments so you can decide on your next best steps for each. Some of the options you would have for each would be to top up on your existing policies (if the market is good), buy out some of the investors to get more shares (if demand is good), rent out or sell property or even use property as collateral to fund your current dreams that will serve you for the long term. Just make sure that you’re guided by the market, your personal budget, and sound financial advice (number 5), before you act on your plans.
Whatever your plan of action is, the point of this exercise is to always make sure that your investments are working hard for you. We all have that tendency to get excited over investments that jumpstart our goals but when it comes to long-term investments, we tend to forget to re-evaluate their worth. If we don’t start managing them, we’re not only surrendering the cash we spent for it but even our dreams. Sounds cheesy, but if we don’t quit managing your investments too soon, they really will love us long time. *Micdrop
Adulting pro tip:
You may not be able to put your money in equity-oriented investments yet if you’re still in the adulting or growing family stage. In fact, at this stage, all your best options are right up the category of high-risk-high-return investments and other personal financing options for funding your new financial needs a.k.a. new life priorities, but that doesn’t mean that you are taking a step back from growing your money either.
There’s always the right investment that is suitable for each life stage. The concept of how to make your money grow doesn’t always have to be instant or should directly multiply the amount of the capital you spent. It can also mean making the right steps to achieve the things you need to foster your personal and family welfare and growth. That means, returns can provide intangible value in the short term. It’s up to you to decide which one gives you the best value.
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5. Get expert financial advice
WHEN IN DOUBT on the topic of personal financial goals and resolutions that help you grow your money, you can always reach out to local financial gurus. Consult on your financial goals and money growth plans with them. This way, you’ll be confident to take on your financial resolutions that will help your money grow.
Why is this number 5 on the list, you ask? Because we would advise you to show your finances or budget tracker and communicate your financial goals, even your biggest and wildest dreams. This way, you can maximize your consultation and your financial advisor can suggest ways and investments that best suit you.
Last few tips to remember before making big leaps to growing your money:1. Only make investments that suit your risk appetite 2. Don’t just go with the flow. Don’t put your money in investments that you don’t understand and have no time to learn about. 3. Never invest money from your emergency fund and day-to-day expenses
Time is ticking, hun! Work on those financial resolutions now and grow your money for the long haul!