9 New Year Resolutions to Welcome Financial Freedom in 2020

Updated on: 14 Dec 2021 // 27 min read // Credit Cards // Personal Loans
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With the New Year 2020 just around the corner, it is time to celebrate, and retrospect the past and wish for a better and healthier life ahead with the loved ones. From Christmas to New Year, these are the well-deserved holidays for all. Whether you decide to throw a bash or visit your parents or witness a New Year’s sunrise in style with a beloved at an exotic location, it is a must to make some personal as well as financial vows for the life you deserve.

Financial resolutions for 2020

Beyond the festivities, it is the best time to review your financial strength and create some meaningful resolutions for 2020. You can analyse your year-long financial performance by reviewing past statements of your Credit Cards and Savings Bank Accounts.

To ease up your task to organise finances for the coming year, we have curated a list of 9 New Year Resolutions that can help you achieve the much deserved financial independence in 2020: –

Pay Off Your Credit Card Dues:

Credit Cards bring along immense freedom and convenience. However, you need to exercise due discipline in the usage to continue enjoying financial independence with your plastic money. So, first and foremost, resolve to never pile up Credit Card debt in the New Year 2020.

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Whether you are using only one Credit Card or multiple Credit Cards, be responsible and pay off your Credit Card debts in full, every billing cycle.

Credit Cards can carry an APR of up to 48%, which is enough to push you towards a debt trap. If you cannot pay off the credit card dues, avoid the minimum payment trap and instead pay as much as you can. This will allow you to get rid of the debt quickly and breathe a sigh of relief every time. Swipe with the intention to repay within a month, every single time!

Prepare a budget and follow it:

If you are not already preparing a monthly budget, then start doing so in 2020. The process is very simple and straightforward but offers incredible benefits.

Preparing a budget and allocating money to different heads proportionately allows you to monitor your finances closely. You can thus take corrective actions as and when required. You can successfully build corpus according to multiple life goals.

Separate your everyday purchases from debt: 

In 2020, you need to make sure that you separate your everyday purchases from the debt. This can be achieved by using different Credit Cards for different financial needs. You can use a Rewards Credit Card to maximize the benefits on your regular purchases and another Credit Card for payment of transactions that you plan to pay in instalments.

This will not only help you separate your everyday spending from your debt but also reduce the cost of your debt. For instance, if you travel regularly, you can use a Citibank PremierMiles Credit Card to get attractive deals on your travel bookings and avail amazing benefits along.

Monitor your CIBIL report:

You need to make sure that you keep a close eye on your credit report in the year 2020. The importance of having a good credit score can not be overstated. Not only does it allow you to Get a Personal Loan or Credit Card with relative ease but also allows you to get the best interest rates on credit facilities. By keeping a close watch on your Credit Information Report, you can stay foolproof against online frauds and stay vigilant against any errors or compromise with your financial details.

Strengthen your emergency fund:

Needless to say, the health of your emergency fund is extremely crucial for fulfilment your financial goals in the New Year. If you do not have an emergency fund, then you must create one right away. You should allocate a fixed percentage of your income to this fund without fail. This will help you create a corpus that can allow you to handle financial emergencies without dipping into your savings.

Create a diversified investment portfolio:

While the safety of your investments is important, but having a random investment portfolio is a recipe for disaster. With various interesting investment avenues coming up in the last few years, you must also explore beyond the safety net of Fixed Deposits. Create a diversified investment portfolio comprising a proper balance of fixed deposits, mutual funds, insurance schemes, equity shares, and other options. This will not only grow your money at a steady pace but will also help manage the risks involved.

Put your bills on auto-pay:

Late payment charges can ruin your financials in two ways. On one side, you end up paying up late payment charges, and on the other hand, your credit score takes a beating due to missed payment due dates. So, in the New Year 2020, make sure that you put all your bills (Credit Card, Mobile Phone, Internet, DTH, etc.) on auto-pay mode. Link them to your Debit Card/ Credit Card or your Savings Account and forget the worries that come with forgetting the due payment dates.

Focus on your physical and mental health:

Well, you might be thinking about how can physical health be related to financial resolutions for 2020. But it is needless to say that to make sound financial decisions and avoid costs associated with hospitalisation, you must have good physical and mental health. You need not spend huge amounts of money to fulfil this resolution in 2020. Go for morning walks, eat healthy food, practise yoga, sleep on time, and incorporate a consistent routine to yourself can help you avail incredible mind & body benefits.

Follow a “no-spend” day every week:

One of the important resolutions that you must observe for 2020 is to follow a No-Spend Day every week. This will help you identify and control impulsive purchases, which otherwise burn a hole in your pocket without adding any value to your routine. By controlling splurging and getting rid of needless purchases, you can save more money that can be invested or can be used for essential wants & productive purposes.

By following these resolutions, you can enjoy significant peace of mind as well as strengthen your financial position in the New Year 2020. But make sure that you stick to these goals so that you can enjoy the benefits in the long run.

Also Read : 6 Effective Hacks to Plan a New Year Party on Budget

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