Many people tend to focus on physical health and personal development when it comes to their New Year’s resolutions, but I’m a huge advocate for using the start of the year to prioritise your financial wellbeing. Given that financial stresses are a leading cause of mental stress which can also affect your physical health, financial wellness is a must when it comes to holistic wellbeing. After the collective uncertainty and ups and downs (cost of living crisis, sky high interest rates etc) that 2023 threw at us, there has never been a better time to take control of your finances. Whether you’re setting financial goals as a family unity or as an individual, proactively focusing on your finances and working towards a positive money mindset can have huge benefits on your overall wellbeing and family life.
Set Your Financial Goals
One of the primary benefits of setting financial resolutions is the opportunity to establish your financial goals and have a solid idea of what you want to achieve or where you want to end up. This can serve as a roadmap for your financial journey as you navigate the year, providing direction and purpose. Whether it’s saving for a holiday, funding education or childcare, or building up an emergency fund, a unified vision helps you work towards common objectives and sets you up for success in achieving financial milestones through the year. Remember, if you don't know the destination, it makes the journey on the way much harder. So set yourself up for success; give clarity to your financial destinations.
Setting A Budget
Budgeting is a great tool for managing your household finances efficiently. By making resolutions to create - and stick to - a budget, you can control spending, identify areas for potential savings and allocate resources strategically. I recommend using a tracker, whether it’s a specific app or a spreadsheet, so you can keep an eye on your budget and how it’s working for your family.
Saving And Investing
Setting aside a portion of your income for savings and investments helps you to build wealth over time. There are lots of different options for various investment options, such as stocks, bonds or property, depending on your risk tolerance and financial goals. I started my fintech investment platform Propelle to help women build investment confidence and, most importantly, to help them to take action towards building their wealth. Start with small amounts and build from there. And remember you're not alone when it comes to investing, there are entire communities of women out there just like you.
Be Honest And Take Action
Worries about finances are often made worse when we bury our head in the sand, rather than facing up to the reality of what’s going on. There are lots of ways to get out of financial strife and a lot of support out there to help you. Spend some time going through your finances - look at what’s coming in, what’s going out, what debt is costing you, where you can make savings or cancel unnecessary spending. Taking control of your finances is incredibly powerful - it should be you in control of them, not the other way around - and that is how you take your first steps towards positive financial wellbeing.
Diarise Check-Ins
Many of us are guilty of setting resolutions in January and them falling by the wayside as you navigate the rest of the year. I’d recommend diarising financial check-ins throughout the year so you can track your progress, review your budget and tweak your plan accordingly. Having a quarterly review in the diary, for example, can help you keep on track and make sure you’re sticking to your goals. You could even work with a friend who does the same and you become each other's accountability partners, holding each other accountable to the goals you set.
Celebrate Milestones
Make a plan to celebrate your financial achievements along the way. Whether you’re paying off a credit card, reaching a savings milestone or making regular investments, acknowledging your progress can help to stay on track and keep you motivated.
Teaching Your Kids Valuable Financial Lessons
This is one for your children’s future financial wellbeing; involving them in your financial resolutions offers a valuable opportunity to teach them important lessons about money. Teaching the basics of budgeting, saving and investing from an early age will empower your children to make informed financial decisions throughout their lives. As parents, we need to make it the norm that money is spoken about and discussed with our children. We talk with our daughter all the time about money, whether that’s spending, saving or investing. At the age of six she understands the power of investing and making your money make more for you. By involving your children in family discussions about financial goals and strategies, you’re contributing to their long-term financial wellbeing and setting them up for the future. This can be done with any children in your family, not necessarily your own. If you're an aunt, grandmother, godmother or even friend to people with kids you can share these valuable life lessons.
Ayesha is the founder of Propelle, a game-changing new fintech investment platform designed exclusively for women to change the way they invest and build their own wealth. Through Propelle women have the opportunity to connect, learn and invest regularly, with confidence in a way which has never been available to them before.