Money Resolutions You Don’t Have to Keep
Money is an important aspect of life and every year millions of people around the world make some kind of resolution related to how they are going to better manage their financial future. But did you know there are some money resolutions that you don’t actually have to keep?
In this article, we’re going to explore some of the money resolutions that you don’t have to keep. Knowing which ones to scratch off your list can help set you up for a more free and empowered financial future.
What is Financial Literacy?
Before we dive into money resolutions you don’t have to keep, let’s start by talking about the importance of financial literacy.
Financial literacy is the process of understanding and interpreting financial information in order to make informed decisions about your finances. It’s important to have a basic understanding of the different financial concepts, their uses, and the potential risks associated with them.
Learning about finances can help you gain a better understanding of where your money is going and make more informed decisions about how you want to use it. This can provide a solid foundation for your future financial success.
Common Money Resolutions
Now that we’ve looked at the importance of financial literacy, let’s take a look at some of the common money resolutions people have. Here’s a list of the most popular resolutions people have made in regards to their finances:
- Create a budget.
- Start an emergency fund.
- Save for retirement.
- Pay off debt.
- Invest money.
- Cut costs.
- Track spending.
- Stop impulse purchases.
- Donate to charity.
- Save for a big purchase.
Money Resolutions You Don’t Have to Keep
Now that we understand what financial literacy is and have reviewed some of the common money resolutions that people make, let’s examine some of the money resolutions that you don’t have to keep. Here’s a list of five popular money resolutions that you can drop:
- Create a budget:
Creating a budget and tracking your spending is an important financial step for many people, and you don’t have to do it if it does not suit you. If you like to live by feel and don’t want to get into the minutiae of a detailed budget, that’s OK.
- Start an emergency fund:
Having an emergency fund is a good idea, but you don’t necessarily need one. If you don’t have an emergency fund, it doesn’t mean you won’t be able to cope with unforeseen circumstances such as an illness or job loss. You can create a savings or retirement plan that allows you to access the funds if needed.
- Pay off debt:
Most financial advisors will tell you to pay off your debts first, but you don’t always have to. If you feel like you can manage and pay off your debt, then by all means do so. However, if you feel like your debt is overwhelming and taking over your life, it might be better to focus on ways to reduce stress and manage your money better instead.
- Cut costs:
Cutting costs is a good idea in many cases, but be careful not to cut costs on things that keep you healthy and happy. It’s OK to choose a more affordable version of certain items, but if you find yourself compromising too much for the sake of saving just a few dollars here and there, you’ll probably end up feeling worse in the long run.
- Track spending:
Keeping track of your spending is important, but it’s not necessarily a “must do”. Again, if you feel like you can manage your money better without tracking every single penny you spend, then it’s OK to skip this step.
Overall, there are different money resolutions that you don’t necessarily have to keep. Ultimately, the decision is yours and you should do what’s right for you and your financial future.
The important thing is to focus on good financial habits and practices that you can carry out every day in order to achieve a secure financial future. Financial literacy and understanding how money works go a long way, and can help provide you with the knowledge and skills you need to make informed decisions about your financial future.
