The new year is almost here! It’s the perfect time to reset and restart your financial resolutions. If you don’t know where to start or what you can do to improve your finances this 2021, here are five financial goals for you to consider adding to New Year’s resolution:
Optimize your spending
The beginning of the year is the perfect time to take a step back and examine how you have handled your finances in the previous year. Sit down and write how you utilize your income every month. From there, you can assess which part of your spending you should retain in the new year as necessities and which ones can be cut as “nice-to-haves.”
Your utility bills, food and transportation expenses, rent, and other financial responsibilities, of course, should fall under necessities. Unused subscriptions, takeout and delivery meals, and pricey mobile phone plans, are some examples of expenses that you can easily cut back on. Don’t forget to set a monthly budget and stick to it.
Save for an emergency fund
Not everything goes according to plan. That’s why setting up an emergency fund is one of the most important steps towards financial freedom. This fund can help cover unexpected expenses such as medical emergencies, home repairs, or even be used as temporary income replacement.
A good way to determine how much your emergency fund should be is to first identify your monthly income. If you are the breadwinner of your family or if you are working in an unstable industry, it’s best to keep at least three to six months of your monthly income as your emergency fund in order to be prepared for unplanned circumstances that may come your way.
Improve your career
One of the best ways to increase your income is to work on advancing your career. This can be done in many ways including applying for a promotion in your company, learning a new skill, or improving existing skills through certification. These can help increase your market value and allow you to gain a better salary package in the future.
Create a financial plan
Start the year with a clean slate and create a long-term financial plan. In this plan, you should be able to determine a target timeline of several financial goals you’d want to achieve in the coming years. Keep in mind that everyone has a different financial plan, and your milestones can include purchasing a house, paying off existing debts, etc. depending on where you want to be in the future. Setting this down will make it easier for you to make financial decisions over the next couple of years.
Start investing in your future
The new year is a great time to work on generating additional income to help secure your future. Investing is a great way to build wealth by committing money or capital to something that will give you more profit. There are several types of investments such as stocks, real estate, and businesses.
Take time to study what type of investment you prefer and understand the risks that come with it. Identify a threshold or your risk tolerance to know how much you are willing to invest. Remember, investing comes withrisk, but if you are careful enough, your investments can yield rewards twice your capital.
Fund your investments with a CIMB Bank Personal Loan. Apply through our all-digital application using only one ID and one pay slip. Borrow up to P1 million with ZERO disbursement fees when you opt to have your loan deposited to your CIMB account. Absolutely no early settlement fees. Experience the benefits of banking with the most awarded digital bank in the country.
PLUS you can get up to 30% interest rebates on your Personal Loan just by paying your dues consistently and on time. Through the Loan Loyalty program, you can enjoy yearly increasing interest rebates starting with 10% for the first year and up to 30% by the fifth year. All you need to do is pay your monthly loan payments completely and on time! If you’re a CIMB deposit account holder, just apply and get approved for a Personal Loan on or before December 31, 2020 to become eligible.
Reach your life’s goals this 2021 with CIMB Bank!
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