As you begin visualizing and creating your vision boards, here are four financial New Year’s resolutions to avoid making and tips on how to create goals you can actually achieve.
Avoid These Financial New Year’s Resolutions
1. To Be Debt Free
Instead of setting a vague debt freedom resolution, identify specific debt(s) or an amount to tackle and focus on paying off or down for the New Year. The accomplishment of paying off each debt will give you the encouragement you need to continue on your journey to debt freedom, especially during rough financial times.
2. Cold Turkey Spending Cuts
The abrupt and complete manner of going “cold turkey” usually leaves people feeling deprived and defeated if they fail, especially for spenders. When this happens, many feel resentful and tend to cheat or “kill the turkey” altogether and splurge, thus overspending.
Instead of making the empty “cold turkey spending cuts” resolution, reduce excessive spending from every day down to a few days. Once you get used to minimizing your excessive spending behavior to only a few days, add a day or two more to your “spend less” days. You may find that you don’t need the things you were spending on as much as you thought.
You should also turn excessive spending into behaviors that improve your financial situation. Eating out every day, for example, is the leading budget buster. Instead of eating out every day, meal prep your breakfast, dinner, or lunch for two to three days a week. Or, instead of hitting the vending machine at work, buy your favorite snacks or drinks in bulk and stash them at your desk. Every time you take a snack or drink from your stash, add the money you would have spent in a savings jar. When the jar is full, dump it into a savings account or use some to splurge.
3. Insurmountable Savings Goal
4. Quit Your Job to Start a Business
Hating your job is NOT a good reason to quit your job to start a business.
Not liking or not being satisfied with your job may mean you need to find a new job. However, if you want to start a business, keep your job during your entrepreneurial learning curve. Your job is the first corporate sponsor of your business. Your salary will not only pay the bills and sustain your lifestyle, but it will also help you fund the necessary business startup, formation, and coaching expenses.
Instead of rushing to fire your boss to start a business resolution, start a side hustle. Become a “dualpreneur” (employee and entrepreneur). Leverage your job’s benefits and steady income flow while developing your side gig into a profitable, legitimate business that may surpass or replace your salary.
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Source: Black Enterprise