2016 is off to a great start and many resolutions have been made. Making a change in your life by setting goals is all fine and dandy; but beware the resolutions that you make – they just might wreak havoc on your personal finances.
Here’s a list of the top 10 New Year’s resolutions that can turn out to be a real waste of money – unless you do them right.
‘I will start eating healthy’
Healthy doesn’t necessarily have to be expensive, meaning you don’t have to eat only the organic, imported and fat-free foods that will seriously damage your groceries budget. The same goes to all the fancy health supplements that you’ve started on to keep in line with this resolution. How do you know they won’t damage your body in the long run?
How To Do It Right:
Opt for cheap, local produces that will help you achieve your resolution without harming your budget. You can shop for fresh ingredients at the local wet market where they normally sell inexpensive home-grown vegetables and free-range poultry and meat. As for the supplements, we recommend you to get your doctor’s advice to determine what extra nutrition your body really needs, and take only what’s necessary.
‘I will find my soul mate this year’
Ah, the age old conundrum – ‘when will I find my other half?’ We know, it could get lonely, even depressing when it comes to the matter of love when you’re single. But no matter how much you rush it and try to make it happen with Tinder dates or subscribing to online dating sites, if it’s not your time, it’s not your time.
How To Do It Right:
Instead of going all out on trying to make someone fall in love with you, you should calm down, focus on yourself and stay open-minded. Dates don’t have to be in super fancy restaurants or night clubs all the time. So don’t bankroll any relationships until you’re on the verge of bankruptcy just for the sake of impressing your date. After all, true love begins when nothing is looked for in return.
‘I will travel more this year’
Who doesn’t love travelling? The journey to self-enlightenment and all that. We’re not saying you shouldn’t travel at all, but rather than making ‘travel more this year’ your resolution, tweak it to ‘I will travel at least once this year’.
How To Do It Right:
Why? Firstly, you have a limited number of vacation days in a year. Secondly, unless you have a bottomless bank account, you have a limit on how much you can spend on a vacation at any given time. Pick a destination at the start of the year and save up enough money by the middle or the end of the year. Plan your travels ahead of time, as the price of flight tickets and accommodation will be cheaper.
‘I will start a new hobby’
It’s typical that when you vow to be a new and better person, you’ll take up a new hobby as well. This all very good and well, until you start missing out on your rent or car installment payments as you keep spending more money on new hobbies in search of what’s most suitable for you.
How To Do It Right:
It’s good to learn new things, just try to keep it realistic. Instead of going all over the place with a bunch of different new hobbies, take the time to decide on what you’ll really like and commit for the long term before investing in it.
‘I want to look different’
New Year, new you – isn’t that how the saying goes? Getting a new hairstyle and a complete wardrobe revamp could cost you a bomb, but ending up with a hairdo and style that you might eventually grow bored of and dislike would be even more disastrous.
How To Do It Right:
Again, think it through before you spend hundreds of ringgit on your hair and clothing. Get opinions from your friends and family before you decide on anything. Go over the contents of your wardrobe and try the mix and match method to suit the style that you want to achieve before buying new ones. Retro styles always make a comeback anyway, so don’t worry too much about your clothes.
‘I want to start a side business’
Some people can really make big bucks with their side businesses, but chances are if you’re doing that and still maintaining a full time job – you might get too busy to juggle your daily life, work and maintain the side business. And in the end, your investment might just go down the drain.
How To Do It Right:
Rather than putting your money into a side business that you might not be able to control, try going with a part-time job that you can easily keep up with during your free time. Things like baking, writing and data-entry require very little capital, on top of being flexible on your schedule. You can also consider joining Go Get and Uber for a side income.
‘I will definitely lose weight and get fit’
On its own this particular entry is not bad at all, in fact it’s a really good resolution to maintain your health. The mistake comes when – in order to achieve your goal – you sign up for expensive gym or fitness memberships that you don’t really utilize due to time constraint, not to mention all those pricey slimming programs. Things get worse when you go all out and splurge on work out outfits, shoes and equipment, only to end up wearing them once in a month.
How To Do It Right:
Go easy on what you spend to reach this goal. Skimp on the monthly gym membership and just go with the pay-per-use option, or sign up for something cheap and flexible such as KFit – which cost only a fraction of what a gym would normally charge. Better yet, make full use of the free resources that we are blessed with by Mother Nature, go jogging and work out outdoors and enjoy the scenery and fresh air.
‘I will clear off my debts’
This resolution may do more harm than good to your financial life if not handled properly. Most people would apply for a personal loan to settle their debts all at once, which is smart, but if you apply for one with a high interest rate just so you can pay it over a longer period, you’ll only end up with a larger debt burning a hole in your pocket.
How To Do It Right:
You need to calculate your finances carefully and thoroughly research on the personal loan market to ensure you get the best value for your refinancing. You can compare and apply for the best personal loans in the market!
‘I will invest in a new car’
Don’t mistake a new car as an investment, as its value will depreciate over time. If you already have a car that still works well and is only a few years old, you’ll incur a Plus, a new car will cost more in the maintenance department.
How To Do It Right:
Get a new car only when you can really afford it, and when you can to provide a substantial down payment to offset the loan’s tenure and monthly repayment amount – or buy a secondhand car.
‘I will do more for my family’
This is a very tricky one. A lot of people mistake ‘doing more for family’ as spending more on them, such as paying for their vacations, buying things to make up for your absences and buying unnecessary gifts for them to show that you ‘care’ for them.
How To Do It Right:
Your loved ones will appreciate you making effort to spend more time with them rather than just lavishing them with material objects. So don’t ease your guilty conscience by unnecessarily spending money that you’re better off saving! Do more for your family by giving them the gift of your time by having regular family meals, going on outings – even if it’s just to the park – and helping out at home.
Now that you know the top money wasting New Year resolutions, hurry up and make the change to save and improve your financial life. Better late than never!
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