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Financial New Year's resolutions to secure your finances in 2013

The New Year is always an exciting time to reflect on achievements of the past year and make resolutions for the New Year. While it is not wrong to pledge to shed off a few pounds or buy a new gadget, it is also important to set specific financial goals to secure your personal finances. This is especially important now in the current, global economic turmoil. The following three financial New Year’s resolutions can help you can secure your finances and maintain a healthy financial account in 2013.

1. Start an emergency fund

The harsh economic climate in the world demands that you have an emergency fund just to stay on the safe side of things. Start an emergency fund this year as part of your financial New Year's resolutions. The emergency fund will protect you against any unexpected difficulties that can hamper or derail your finances.

Build up an emergency fund worth at least half a years’ cost of living expenses this year by cutting back on your personal spending. This fund will cover you through difficult spells when you are experiencing financial setbacks or emergencies, such as unemployment or sudden illness.

2. Pay off credit card debt

If you have substantial credit card debt, make a commitment to pay off your debt this year. Cut back on how much you charge on your credit card for purchases to prevent escalating debts. Of course, cutting back will require a lot of discipline and sacrifice, but it must be done to become debt-free.

Review your monthly spending habits and total bills and decide how much you can comfortably pay off your credit debt during the year. If you have high interest credit card balances, consider whether it is feasible for you to pay off those high interest debts with your savings.

Once you are debt-free, you can decide whether to continue with your austerity measures or relax and have some fun with the money you save on interest for debts you owe. Just don't charge your card more than you can comfortably pay off at the end of each month.

3. Rebalance your investment portfolio

When it comes to securing your financial future, the importance of investing cannot be underscored enough. So too is the importance of updating your asset allocation in the market place or rebalancing you investment portfolio. Good fortunes one year in specific investment sectors may not necessarily follow good fortunes the next year, and vice versa.

Review your investment portfolio this year and resolve to rebalance it appropriately. This will help you lock in gains from investment sectors that promise the best returns. Remember, don’t set too many or unrealistic financial New Year's resolutions. Otherwise, you may be unable to accomplish any of your goals for the year.

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