As the year comes to a close, most of us are taking stock of different areas of our lives and thinking of new habits to form for a better New Year. One of the areas I know I am most concerned about is my finances. 2019 showed me what was possible with a little bit more money and oh, it was sweet. I want to explore and enjoy that sweetness a little bit further in 2020. So here are some money habits I am hoping to start and continue in 2020 to help me do just that.
Pay down debts and loans
One thing I was deliberate about in 2019 was paying off a little extra on my loans as they came due, or whenever I had extra cash. Let me give you an example; rather than paying only the required amount of principal and interest on a loan each month, I paid a little bit more on the principal which means the interest I will have to pay in the long run goes down monumentally. I saved over $8,000 in interest alone this year just by paying a little more towards the principal. This is a great principle if you have any debt and I plan on doing some more in 2020
There are so many savings vehicles at our fingertips today, thanks to technology and automation. Go beyond emergency savings and start saving towards goals as well. Maybe you are really aching to travel. Well, start saving towards it. Maybe you want to start a new business-save towards that as well. Create savings goals and aim to meet them in 2020.
I am not going to lie. I didn’t do this in 2019. But it is on the top of my priorities for 2020. Do I need new clothes? Or that spanky new Macbook? In 2020, I am hoping and planning to focus my spending on needs only. Extra income is not a reason to spend more, it is a reason to save more so don’t buy into that idea of getting poorer even though you are earning more.
Learn a new skill
New skills can translate into new streams of money. Even a simple skill like making hair or sewing can mean a solid source of income in 2020. Coding and data analysis are some of the top-earning fields in countries like the US, Canada and even Nigeria these days. Also, there are so many ways to learn these skills for free. I have heard of people who learned coding from a friend or free online courses. So seriously, there is no excuse. I didn’t do this in 2019 but really looking forward to upgrading my consulting skills in 2020.
What new money habits did you pick up in 2019? What new ones do you plan to start in 2020?