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6 Financial Resolutions for the New Year

10 May 2022

Every new year is that time of year again when we can look back on the past year and reflect on all the accomplishments, failures, and mistakes. Many people think that it is too late to start saving for retirement or other life goals. But the truth is that it is never too late to start. The earlier you start saving, the more you will have when you need it. If you want to be financially successful in the future, then there are some financial resolutions for the new year that you should take every year. These resolutions will help you build a better future for yourself and your family.

New year financial resolutions are important to reset your priorities and make sure you have a plan for financial success. Too often, individuals and families take on debt that can be avoided with some careful planning. Whether you’re making these decisions personally or helping friends and family, you can use this guide to help others achieve their financial goals. 

So if you’re looking for some inspiration on how to improve your finances this year or in the coming new year.

Here are 6 Resolutions You Should Take Every Year-

  1. Calculate Your Net Worth

It’s important to know where you stand financially, and the best way to do it is to calculate your net worth. You can do this by adding up all of your assets and subtracting all of your liabilities (including debt). If you have a large amount of money in retirement accounts or investments, that will be considered an asset. Liabilities include things like student loans and credit card debt.

  1. Reset Your Retirement Savings

If you’ve been putting off saving for retirement, now is the time to get back on track! A good rule of thumb is to aim for saving 15% of your income—but if that seems impossible right now, don’t worry! The important thing is that you start saving now so that over time you can build up enough money for a comfortable retirement. If you’re worried about having enough money once you retire, consider ways to cut expenses so that more goes into savings each month. Or try negotiating with your employer for a 401(k) match or increasing how much they contribute on their end!

  1. Update Your Goals

It’s important to keep track of your progress throughout the year so that you can see what’s working and what needs improvement. This way, when it comes time for another New Year’s resolution, there won’t be any guesswork involved!

  1. Pay off your debts

If you have debt, it’s best to pay it off as soon as possible. The longer you’re in debt, the more interest you’ll be paying—and the less money you’ll have for other things. Make a plan for how much you can afford to put toward paying down your debt each month, and stick with it!

Credit cards can be dangerous if they’re not used responsibly. Always pay off your credit card balance in full each month so that you don’t pay interest on top of what you spent!

  1. Rebalancing Your Portfolio

It’s easy to get caught up in the excitement of having a lot of money, but if your investments are all over the place, they could actually hurt your portfolio. Rebalancing is an important step toward making sure your investments are as efficient as possible.

  1. Keep a check on your Credit Report

If you haven’t reviewed your credit report recently, now is a good time to do so. It’s important to check for errors and make sure that all of your information is up-to-date. You can then take steps to resolve any issues you find with your report, which may include disputing an error or requesting a copy of your credit score.

  1. Review Life Insurance and Disability Insurance Needs for Future

It’s also worth reviewing your life insurance and disability insurance needs at this time of year. Many people don’t know what kind of coverage they need until something happens that makes them realize how vulnerable they are without it. So if you’ve never gotten around to getting life insurance before or updating your disability plan, now’s a perfect time—while everything else is still fresh in mind!

Wrapping Up

The goal here was to provide you with a list of important financial resolutions for the new year to help you start off your New Year.  If you’re thinking about your finances this new year, don’t forget to consider the ideas collected here—we believe they’ll help you get started on the right foot. Commit yourself to improve your financial life using at least one of the steps above. Before you know it, you’ll be thanking yourself for taking control of your finances and saying goodbye to debt forever! 

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