What is your new year's resolution for 2022 this time? Continuing your studies or building a house for your family? Buying a dream car or vehicle is also a good choice. New Year's resolutions are the same thing every turn of the year. Not only preparing the targets to be achieved over the next one year, but you need to design a mature strategy to achieve them.
Although not all resolutions have to do with finances, this is a priority for most people. Why? Because everyone certainly wants to achieve a better financial condition than before.
Finance is an important aspect that cannot be separated from human life. Therefore, with good financial planning, you can realize what you have targeted throughout the year.
Welcoming the start of the new year 2022, are you ready to change the financial planning system for the better? This is the right time to fix financial resolutions so that your dreams can come true this year.
3K Financial Concepts (Needs, Wants, Abilities) for New Year's Resolutions
If you look at the financial condition throughout the past year, you may begin to realize the obstacles and causes of its instability. There are even resolutions that have not been implemented due to unfavorable financial conditions.
Now, it's time for you to implement a more organized and wise financial planning system. The first step is that you must understand the concept of wants, needs, and abilities in your current finances.
Needs
The basic things that must be fulfilled and affect the survival of your life. Needs are objective or binding, meaning they are indispensable and a priority for survival. Have clear and sustainable benefits and functions.
Desire
Generally, it is a derivative of excessive needs or something that you think is still lacking. In fact, wishes are not binding and do not have to be fulfilled as soon as possible.
Ability
If it is related to finance, ability here means to refer to a person's financial condition when he is able to meet a certain level of funding in his life.
Simply put, a need is something that you must have to support life such as eating and drinking, housing, internet costs, electricity bills and others. A desire is something you wish you had. From the definition above you can now understand what functions are and which ones should be prioritized.
To design new year's resolutions, these 3 concepts can also be applied. Which one do you need more right now, and which one should you prioritize?
But that does not mean you are prohibited from fulfilling your wishes. As long as you and your family's basic needs have been met, you are free to grant what you want. This can be decided by looking at your current financial capabilities.
With a note, make sure the needs are met properly and on time. The way you need to calculate income and expenses then make details and make a check-list so that nothing is missed.
Financial Management Strategies for New Year's Resolutions
After you have created your roster and details regarding your targets including financial planning for this year, it's time to create a strategy to make it happen. Not only detailed written budgets are needed, but the ability to manage and manage finances wisely can help you meet this year's resolution target.
Control spending by limiting desires
You can increase your income, which means you need more trouble and energy to spend. If it's too difficult, you can start by reducing your expenses and desires. Remember, basic needs are your priority in addition to fulfilling wants.
You can realize these desires slowly and not in a hurry with long-term goals. The most important thing in managing finances for New Year's resolutions is to be optimistic but still realistic.
Explore information related to financial products and services
Look for products or services that can support your resolution. For example, if you want to buy a car or electronics this year, you can save from now on by using the right financial products as needed.
This year is also the right year if you want to start investing. The gradual economic recovery that has been seen will also affect conditions in the money market and capital market, which you can take advantage of.
Do the analysis carefully, to determine which instrument suits your needs, abilities, and financial goals.
Allocate money in separate accounts
It's better if you separate your active account for transactions with a savings account. This is to reduce the risk of loss and ensure your new year's resolutions are achieved. That way financial goals can be protected.
Discipline
Financial planning is important, but implementing it throughout this year requires consistency and self-discipline. Don't think about saving with money left, but put money up front, right after you receive your income. Set aside regularly each income to each financial allocation post.
With the right financial planning and strategy, this New Year's resolution can be realized without missing a beat. So what are you waiting for? Giggle, make your financial plan now!
