2022 is about to come to an end. Have you worked on your resolutions yet? Why not consider adding some financial resolutions to your plan? Saving a bit more will not hurt any of us, and tracking your daily expenses is equally important as tracking your sleep.
Pick a financial goal you want to harbour and make it your resolution for the coming year. Maybe you could go a step further and pick up multiple goals. In this article, we will take a look at five such financial goals you could include in your new year’s resolution.
It might sound surprising, but the first goal is to save more money. Rising prices and fluctuating markets are making it hard for us to save more than we wish. But saving more is essential, and there is a smart way to do so.
What would you think if we told you that you could save without having to worry about keeping a monthly average balance? Wait, there’s more: the account in question is entirely digital, and you can open it from the comfort of your own home. Kotak811 zero balance savings account is one such account targeted to fulfil the savings needs of today. On top of having a zero balance account, you can use this account to make digital payments free of charge. Also, the account offers a lifetime free credit card if you need it.
Improving one’s credit score
More of us are getting exposed to credit these days, and keeping up with a stellar credit score should be our priority. There are numerous advantages to having a credit score of 700 or higher.
Some of the easiest ways to improve your credit score are by paying your credit card bills on time and in full, minimizing the number of credit cards you are handling at a time, and cleaning up old debts. Steps like these will ensure you have a good credit score. A score above 700 offers you the ability to apply for and get credit in the future without any complications.
Create a budget
Budgeting doesn’t mean that you are limiting yourself. It is the best way to track your everyday expenses and control unwanted ones. Setting up a budget will give you proper guidelines on how much you should spend and what amount should go in your emergency or investment buckets.
A good budget consists of all your fixed expenses, the amount you set aside every month towards savings, and your variable expenses. Look at your credit card and bank account statements to see on which items you spend the most. Analyze your spending to figure out the items you could eliminate from your list of expenses.
Creating a good budget and sticking to it will help your finances grow.
Open an emergency fund
A rainy day could be hard to handle without money in your hand. So, keep that in mind and start putting a small portion of your income into an emergency account. An emergency fund is intended to help you get through difficult times. Some common emergency requirements are a sudden medical bill, immediate home repair, or a loss of income. Typically, you should have three to six months’ worth of expenses in your emergency fund.
No more unwanted credit cards
More than a resolution, make it a pledge not to apply for a credit card just because you are getting a good deal from the bank or the lending institution. Though it is difficult to predict how much credit you need, general psychology says credit is addictive, and we tend to go down the rabbit hole.
Also, every time you apply for a credit card, the lender does a credit inquiry. Too many credit inquiries over a short period of time impact your score and are not considered good behavior. Lenders may tag you as “credit hungry,” which might prevent you from applying for a credit card in the future.
The new year is a time to celebrate. But we want your financial success party to carry on. Hopefully, this new year, you will pick up any one of the goals we mentioned in this article and stick to it for the entire year. You can also learn more about how to achieve your financial goals this year with Kotak 811.