Five Financial New Year’s Resolutions

It’s that time of year, and I’m lining up my New Year’s resolutions. Notice these are resolutions, not goals (I have those too, but they’re very specific, containing lots of actual numbers — my resolutions are more general).

If you’re a resolutions kind of person, and you’re looking for ideas, consider the following. But don’t follow blindly. There may be other resolutions you need or want to make.

More Dividend Investing

Dividend investing may be pretty yawn-inducing for younger investors who like the thrill of day trading or forex trading but for me, right now, it’s starting to sound very appealing.

Dividend stocks are generally seen as a safer, steadier, long-term investment, and of course the dividends themselves can provide regular passive income.

This type of investing won’t work for everyone. These stocks often fail to provide significant capital growth, and the dividends paid out may be fairly modest. Plus dividend payments are usually treated as regular income (rather than capital gains as many investments are) and taxed as such, so you’ll need to take advice on whether this is the right strategy for you.

More Fun and Quirky Investing (That Might Not Pay Off)

I’ve written before about some of the quirkier options available for investors who want to try something a little different. Things like investing in music royalties or film projects.

There are also more opportunities than ever to invest in small (and often quite quirky) startups through platforms like Kickstarter and Indiegogo. These investments can be pretty risky compared to those Fortune 500 companies or most dividend stocks, but they can also be fun to get involved in.

I personally wouldn’t consider investing a significant amount in this type of opportunity, but if you have some money to play with and want to do something a little different that might or might not pay off over time, it’s something to consider.

More Fun Money in the Budget

I’m a big fan of including fun money in your monthly budget, and these days I’m definitely not a fan of accumulating more stuff. So I’m going to take some of the money I’ve previously spent on stuff (and probably liquidate some of the stuff I’ve already acquired) and mark that money ‘fun’.

It will go towards travel, experiences, spa days and eating good food with great friends, and I will refuse to feel guilty about it because I’ve moved it from another spending category that simply wasn’t bringing anything but clutter into my life.

Less Impulse Spending

This is tied to the point above. At this time of year I always look back and do a little annual spending review, and while I do improve year on year, I still spent on things I didn’t need or want this year.

Avoiding impulse spending is — to a certain extent — all about designing a life that’s set up to avoid it. This can take many forms. For me it includes:

• Spending more time in nature and less in retail environments
• Unsubscribing from most if not all email marketing
• Using ad blockers on my devices whenever practical
• Spending time with people who don’t treat shopping like a hobby or a competitive sport

A Couple of New Apps

I’m trying out Habitify to try and develop a whole range of healthy habits. Most of them have nothing to do with money, but a few of them do.

I’m not a fan of loading my phone with dozens of different apps for absolutely everything. But I’ve accepted that my brain loves a bit of gamification, and that’s what apps like this bring to the table.

I’m also researching sharing apps like Olio and Hygglo. They provide ways to both offer and receive a whole range of resources locally so if you have something you don’t need you don’t have to throw it away, and if there’s something you want you don’t have to buy it.

Hygglo even allows users to rent items from each other, from camping equipment to golf clubs. A great way to reduce waste, support the environment, save money, and even make money if you have equipment you rarely use but don’t want to sell.

So those are my financial New Year resolutions. What are yours? Feel free to share in the comments, especially if others might find them helpful.

About the Author

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen