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New Year's Resolutions

With the coming of the New Year, many of us will no doubt make some resolutions that we intend to keep, and we may even succeed in our efforts. There will be some failures, however, which cannot be avoided. Of course, there are two questions you need to ask yourself. Have you made a resolution to stay out of debt? What plans do you have to stay out of debt, while minimizing your personal loan debt?

Planning Starts Now

The start of a new year always brings feelings of new-ness, and wanting a fresh start. If you want a fresh start with your finances, you need to start planning right now. Start small with a note pad and a pencil, and make a list of all the things that you can avoid, as well as all the things that you will avoid. Calculate the costs of both the lists. You will reach a conclusion about your financial affairs for the entire year within a matter of minutes.

Set Funds Aside

The year may be new, but old expenses will keep returning with alarming regularity. There will be some that you cannot avoid, so start budgeting for these expenses with a 10% leeway towards the cost of inflation. Take into consideration all the expenses that you may come across in the coming year, including birthday gifts, holidays and/or other special occasions. Set up an emergency savings account for unexpected expenses. You may want to also budget for paying off any personal loans or credit card debts that you may have. One of your objectives, if necessary, should be to improve your credit score, so you need to budget for getting this accomplished. Plan ahead for all the gifts that you will need to hand out, but do not budget beyond your means. Take the conservative approach throughout the coming year as you plan ahead. As you continue to live within your means throughout the year, you will find that you will be able to even save a little bit of money to pad your finances should you lose part or all of your income.

Stick To The Plan

Now that you have your plans for the year, resolve to stick with them. Do not divert from this plan, as it may leave you short of funds. Of course, this will mean cutting down on impulsive spending, but if you do have an inclination to take impulsive actions, plan for them as well. You want to make the best of the difficult times ahead, and you can do so by staying a step ahead of the times. Once you have resolved to keep the decisions you made, you will no longer find yourself searching for that extra dollar that always seems out of your grasp. You will be thankful you took this step, as it will keep you away from that personal loan you may have otherwise needed. Promise yourself that you will make the New Year a happy one.