New Delhi: The two most common New Year's resolutions involve health and financial goals. A record 54% of Americans say they will make financial resolutions for 2014, according to the Fidelity New Year Financial Resolutions Study.
Certainly this year most people will look to save more, spend less and pay down debt, but undeniably there will be headwinds. The economic uncertainty of the past year is also likely to continue this year with people battling inflation, potential changes in interest rates, stock market and rupee.
But rather than worrying about how you will be in financial trouble, focus on what you have. It's easier to fulfill a resolution if you set a specific, quantifiable goal.
According to experts, it helps to make your resolution very specific. For instance, you might say to yourself, 'Okay I'm going to save precisely 20 percent of my income in the year ahead.' It is a great way to go ahead and if you maintain the momentum, then hopefully you'll meet your goal. Also, Also, don't keep that goal a secret, and try to share your resolution and your progress with a financial buddy.
Here are some top financial resolutions, which you can set as your own goals for 2014.
“My first priority should be to clear my debts”
If you're juggling several different debts the best thing you can do is to tackle them head-on. In 2014 your priority should be clearing debts that have more serious consequences than others if you don't meet usual repayment. Most people have at least some form of debt, whether that's on credit or in the form of a mortgage, a loan, or an overdraft. Some of these debts take can be cleared relatively quickly while others will have to be spread over several years. Keep mortgage payment as your highest priority debts because your home may be put at risk if you don't keep up repayments. In case you don't know the rate of interest charged to each of your debts check statements or contact your lender to find out. Figure out which debt has the highest APR or Annual Percentage Rate, the borrowing interest rate for your loan or credit card debt, and put as much spare cash as you can into reducing and finally clearing the balance, making overpayments.
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