We are approaching the end of 2017 and as usual, many of us will begin to think and make resolutions for 2018.
Some of them might look like: eating healthier, traveling to Japan, learning a new language, clearing PTPTN debt, etc.
It's easy to find a list of dreams and goals, but performing them is often the hardest part.
When it comes to defining your financial resolutions, you must first have a very good understanding of what they are.
Three common financial resolutions are: to reduce the debt; to retire comfortably; increase savings.
Although these resolutions are all very important, their realization is not so clear.
How will you reduce your debt, withdraw comfortably and increase your savings?
When making financial resolutions, it is first important to identify why this is so important to you.
The AKPK recently stated that 50% of Malays are not financially ready to retire, many saving too little.
A study by Bank Negara Malaysia found that three out of four Malaysians have difficulty raising even RM 1,000 for an emergency, such as the need to repair a vehicle.
These two statistics alone should be enough to guide you toward long-term financial planning, after all, these are disastrous situations.
In the absence of financial resolutions, most of these alarming situations will continue to be ignored and further aggravate.
You need resolutions in place to make sure that you are not in the same financial situation from one year to the next.
Make realistic resolutions. Once you have identified those that are important to you, make sure that they are achievable.
A vague resolution, like owning my dream home in the first year, is not going to work and you are probably preparing for disappointment.
Divide your resolution into specific goals that will help you achieve a long-term vision.
For example, this year, you could set aside 20% of your income by paying a savings account that will be used as a down payment for your home and you will aim to collect RMB 5,000. here the end of the year.
Know yourself. Going together with identifying resolutions that are important to you, you must also understand your spending and saving habits. Do you tend to spend when you feel upset?
Are you frugal and over-thinking every purchase a million times? Resolutions work best when they are closely related to who you are and what is important to you.
You are then able to take thoughtful steps based on what helps you or what distracts you from your goals.
This may require personal reflection, but this initial work will pay off when you get close to the resolutions that interest you.
Visualize your goals. It's just how humans are programmed to function. Have a visual chart to serve as reminders of your resolutions.
A photo of the house of your dreams, a photo of your dream vacation, or even a photo of a dream car.
Whatever you have identified as a resolution, put it up there. Keep it somewhere you will see every day, it could even be a photo album on your phone.
The constant view of these images will help keep them in mind when making a decision that may help or distract you.
Do not forget to have a little fun and have fun every time you make small steps along the way.
You could do a six-month check to see where you've progressed and if you're on the right track.
Adapt to changes if you need them. Satisfying your financial resolutions will force you to adopt new behaviors or change your money.
For example, reducing the number of restaurant meals or reducing your Starbucks coffee consumption.
From a realistic point of view, there will be setbacks along the way, as our old habits can die hard, but do not get shot down.
Change your approach or adopt a new plan, but whatever you do, do not give up your resolution. Prepare for chess and attack as you go.