We started the year 2020 with great enthusiasm, with New Year resolutions, plans to reduce our expenses, debt and save money. But till now this year has proved to be a great disappointment, the global COVID pandemic has affected our lives as well as the economy worldwide. So, it’s possible that many would have forgotten financial resolutions by now. Refocusing on our finances and recommitting to financial goals becomes very important at this time when our finances are limited and opportunities are less. The task is challenging, but it’s not a lost cause as there are prevailing opportunities, and what we need here is just a push.
So, if you are among those who have lost focus on your finances due to any reason, then you are in the right place. Here are the tips following which will help you to focus on your finances.
Rethink about your resolutions
Doing this is the first and the most basic step which can help you to re-focus on your resolutions and previously set financial goals.
- Think about your previously set goals.
- Ask yourself what was the reason behind setting them.
- It’s also important to check whether your goals are realistic or not? We often fall into the trap of making extreme, unrealistic and unattainable goals. Doing this only results in failure.
- As an improvisation, try to make small, achievable, and realistic financial goals. Doing this will keep you motivated and once you reach your first small goal, you will work with more dedication to reach your further goals.
Control your Credit Card Expenditure
A credit card is a great financial tool that has made your purchases much easier. But, only a few of us have a realization that using our credit card without following any financial management strategy can affect your finances adversely.
One of the most important steps to improving the well-being of your finances is leveraging your credit card. Many can think that they have a credit card with zero or low annual charge, so how can it harm their finances? Well, whether it’s a free credit card or the one which has a high annual charge on it, using any of them often without thinking of the interest charge can be a serious threat to your finances. This is because credit cards charge a huge interest rate which ranges from 16 to 32%annually. So, if one is not clearing his/her credit card bills on time it can be a serious threat to their future financial goals. Further, mismanagement of credit cards can also affect your credit score. So, if you want to achieve your financial goals, try to restrict your credit card uses, if not try to clear your credit card bill every month before the bill date.
Keep on Planning
Once you are done with achieving the above two goals. Plan to pay off your debts, whether it is a credit card debt, your student loan or your personal loan. Make a stepwise plan to repay them at the same time keep an eye on your CIBIL.
In this planning, you can let the loans go which gives you income tax benefits. Try to clear the high-interest rate loans first as doing this can save you a lot of money. While you start implementing these plans, don’t let the emergency fund be overshadowed and ignored.
Take the help of Technology
Once you are done with your financial planning, you can take advantage of the technology to keep your finances in working order. Subscribe to the auto-debit system for loan payments, FDs and RDs. For credit card set reminders on the bill payment dates and keep a track of your finances, trust me this will help you a lot to manage your personal finances.
Don’t lose Focus
Once you are refocused on your financial goals, make it your priority to stay focused. Realize the importance of your goals and the efforts you have made. Self-realization is the biggest fact which keeps you focused and motivated. In case you are losing your focus, start reading the motivational stories of self-made billionaires, read articles that tell the importance of financial planning and money management.
If you have a hard time staying focused on your financial goals, try visualizing how it will feel when you reach your ultimate goal.
The goal-setting needs deciding what goals you intend to reach, estimating the amount of money needed, and planning. However, once you are diverted from your goal, refocusing is quite difficult, but if you want to be successful and enjoy a financially secure future refocusing on your goals is the only way to achieve them.