Home Personal Finance 10 Rules to Financial Success in 2020

10 Rules to Financial Success in 2020

10 Rules to Financial Success in 2020

It is wise from time to time to stop and evaluate our lives as we seek to make the most of them. And the start of a new year provides a natural opportunity to look back and offers potential for the year going forward. If you’re looking for some changes in your financial circumstances here are the 10 best personal finance resolutions to consider. Choosing just one or two to accomplish and you’ll be surprised at the difference it makes in your life.

1.) Save $1,000

Less than 40% of Americans have $1,000 in savings and yet almost every single successful financial wellness plan encourages us to have $1,000 in an emergency fund. Eighty-three dollars a month over the next 12 months and you’ll have $1,000 in savings.

2.) Make 1 Extra Mortgage Payment

Make one extra payment over the course of the year on your mortgage. If you make just one extra payment on your mortgage each year it will lower the life by four or five years of your mortgage. You can do it slowly over the course of the year or maybe use your tax return money to make that payment.

3.) Put Money Into Retirement

Any amount. Your year of retirement is now one year closer than it was before. 78% of Americans say they are extremely or somewhat concerned about the amount of money they’ve saved for retirement and the only way to change that is to get started. So make this the year you open a retirement account and put some money in.

4.) Embrace a 2-week Shopping Ban

Embrace a 2-week shopping ban to challenge your shopping habits. Pick the dates, mark them now and commit yourself to not spending a single dollar over those two weeks. Maybe groceries could be an exception. There’s literally no downside to this experiment you’ll learn a lot about yourself and you’ll save money in the process.

5.) Sell $250 In Clutter

Sell $250 worth of clutter. The premise is pretty simple to turn unwanted stuff into cash money for your home of clutter and increase your bank account along the way.

6.) Remove 25% of Clothing

Similarly, remove 25% of your clothing. The reality is most of us wear 20% of our clothes 80% of the time anyway. Reducing the amount of clutter in your home frees up your life and it begins to challenge your assumptions about how much you need to own. So start with clothes, get rid of 25% you’ll be easier than you think.

7.) Save One Partner’s Income

If you are a dual-income family, seek to save one spouse’s income entirely. This may be very difficult to do it first and it’s certainly going to take some life change and may be based on what your salary is, it might not entirely be possible. But the closer you can get to living on one spouse’s salary or one partner salary and saving the rest the better off you’re going to be.

8.) Make a Budget

Make a budget, no seriously do it this year no more stalling no more putting it off we all know the importance of making a budget. Decide this is the year you’re going to do it and you’re going to follow it.

9.) Invest in Stock

Number nine resolution that you can consider investing money into the stock. Market buying stock is essentially like saying I trust Jeff Bezos to make more money than I can make on my own and with so many apps that make online trading free these days there’s really no excuse. Ten, twenty, fifty, one hundred dollars any amount you can get started.

10.) Become a Monthly Giver

Become a recurring monthly giver to one charity. We all want to be generous. We all have causes that we believe in that we want to support. So get started don’t keep waiting for there to be a bunch of extra money at the end of the month. $2, $3, $4, $5, $10 a month find a charity and commit yourself to giving.

Adopting all 10 resolutions is absolutely certainly too much to ask but if you choose just one or two that you’re passionate about, that you feel is something that you can do this year. Even adopting one or two will quickly make a difference in your outlook towards personal finance.