A couple of days into the New Year, our inner-voices are automatically now thinking about our previous achievements, shortcomings and the future to come. With that in mind, the not so infamous “Resolution” lists come into play and your notepad is already out and filled with the hopes and dreams for your big 2018. Were you able to list down your financial resolutions?
Aside from sticking to your resolutions which is the concern of most people, identifying the financial areas in your life that need work is actually more important and a lot harder than it sounds. However, 90% of a solution to any problem is in identifying it. To get you a step closer to a financially stable and prosperous new year, we’ve summarized the top 10 personal finance resolutions you can adopt for 2018:
1.Rack up your history
Go through your year’s credit, cash, and online spending history and collect them all in one folder you can organize by timeline. Seeing your whole financial year in front of you from rental payments to credit card statements to mortgages will help you get an idea of the number of financial commitments you have and how you’ve been keeping up with them.
2.Create a budget
The tax-free income and the convenient lifestyle in the UAE may be all a bit too tempting. Too tempting that your money can slip through your fingers if you get carried away. Make sure to create a budget so you keep track of what you’re earning and what you’re spending monthly.
3. Little Purchases. Big Impact
It’s the little purchases that happen on a day to day basis that actually sum up to a decent bulk amount on a yearly basis. An amount that you can easily save if you skip on some of the usual daily leisures.
4. Put debt in its place
Nobody wants to run into serious debt in the UAE, the consequences can be dire.
Ambareen Musa, founder and chief executive of comparison site Souqalmal.com, says many expatriates have faced problems after racking up debt on multiple credit cards.
“The balance can quickly spin out of control due to the high-interest rates in the UAE, with the average annual percentage rate (APR) around 40 percent. If you pay late payment fees on top you can quickly run up debts you cannot afford to repay.”
Pay your credit card bills on time, every month, and pledge never to miss a payment. “If you are struggling with credit card debt, ask your card provider to convert the outstanding balance into a fixed-interest fixed-tenure loan, to put a stop on the interest drain.”
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