With the year 2017 just starting out let’s focus a bit on the importance of saving more money as a new year’s resolution. Sure, we may have had similar resolutions in the past and didn’t keep them, so this time around, let’s plan it out properly and make sure we develop better habits when it comes to spending money.
Most people fail with their resolution because they don’t have a realistic plan in place. They will usually make valid resolutions but have unrealistic expectation or lack the motivation and determination to see them through. The way to actually do it effectively is to have a clear laid out plan on how to achieve your resolution, with small checkpoints and objectives along the way so you can actually track your progress.
The first step to saving more money is to open a savings account where you’ll deposit all the money you save every month and watch it grow with interest and adding consistently to it. The more you add, the more you earn off interest, and the better off you’ll be in the future. It’s crucial to start doing this NOW, as early as possible, and then build upon it month after month and year after year. There is a huge difference in starting a savings account when you’re 40 compared to when you’re 30 for example because that’s 10 extra years of interest you are missing out on. Of course, if you are 40 years old or 50 years old this shouldn’t discourage you, saving is important in any stage of your life, regardless of age. It’s wise to start out as early as possible.
You will hear people saying that saving nowadays it has become harder than ever before with the cost of living rising on a consistent basis, but this shouldn’t discourage you. It takes hard work and discipline for sure, but it is more than achievable if you follow the plan and save regularly. It does require sacrifice and self control, but these are qualities you should be looking to develop anyway as they are a requirement for success in any field.
In part 2 of this series we will explore every goal you need to set to be successful in your resolution.