New Year!!! New Beginnings!! That time of hope and excitement where we look forward to a world of possibilities and resolve to get better physically, financially, emotionally, and more. Some of the most common resolutions worldwide are – losing weight, eating healthy, exercising regularly, saving more, quitting smoking, and spending more time with family.
If Covid-19 pandemic has taught us something it is the importance of maintaining our health – physical, mental, and financial. Living with this endemic means being prepared for the worst. Here are some financial resolutions that can help you be just that:
-
Automate Your Repayments – Timely repayments ensure great credit health. Which in turn gives easy access to cheaper capital, as and when required. Missed repayment, brings down credibility and increases the eligible cost of funds. Depleting your chances to save and invest in the future. Automating your repayments helps avoid missed payments.
-
Work on Improving Your Credit Score – Your Credit score is a 3-digit numeric summary of your repayment history. This is a score of your creditworthiness, indicating your propensity to repay the debt you have borrowed. Take active steps toward understanding your credit score and improving it. Lowest interest rates are offered to those with highest credit scores. Build a stable credit history, mix-up your debt type for an interesting mix, pay your outstanding on time and check your credit score regularly.
-
Invest First – One of the most popular personal finance quotes by Warren Buffett is “Do not save what is left after spending, but spend what is left after saving”. We recommend using the power of compounding to your benefit by investing on a consistent basis.
- Improve Your Inflow – The most important investment you can make is in yourself. Learn, garner new skills and improve your financial inflow either by taking up new opportunities or trying out alternate avenues.
-
Budget, Budget, Budget – Study your expenses, prioritise them, rationalise them. Do this every month. Keep some amount aside for contingencies but always spend what is left after saving.
The stress caused by not being stable financially can easily manifest into psychological and physiological illnesses. Good financial health is a building block for good mental and physical health.
If you need guidance on steps to improve your credit score, feel free to reach out to our Debt Counsellors, we help you get better at credit management.
