Start your new year 2020 like a pro by making changes to your small money spending habits. Check the article and add these tips to your new year’s resolutions.

We all have some New Year resolutions. Exercise regularly? Healthy diet? Changing the schedule, and stop being a night owl? Like me! I suppose you all have New Year resolutions for your hard-earned money.

2020 is the year which you should dedicate to moving towards financial freedom. When it comes to becoming financially free, each and every penny counts. Saving and investing in the right asset might give you good returns in the long-run. Even investing 5-10% of your salary can make you financially free before you turn 40.

Most of you do not think about your finances on the New Year as you feel you don’t have disposable income. The equated monthly EMIs and SIPs leave the very little amount at the end of every month. In this post, I will try to help you to make new 2020 financial resolutions and you might see some fruitful results by the year-end.

Emergency Funds

As the US-China trade war, Brexit and slowdown in the manufacturing sector are the biggest concern these days, we all must have few bucks in the savings account for an emergency. You should either consider opening a separate account for saving or make a fix recurring deposit from your current account every money.

Economists don’t expect much growth at least for the three quarters of 2020. Employees in various sectors fear job loss as most of the companies already started to downscale. Small and mid-scale business owners facing lower sales. In such a case, it is a must to have an emergency fund in hands. At least you must make sure to have one year of emergency funds to cover all your bills such as EMI’S, utility bills, housing rent, grocery bills, etc.

Unnecessary Expenses

We all have the habit of spending money due to impulse thoughts. Impulse buying behavior is much higher in countries such as USA, Canada, and the UK where it is easier to get credit cards.

If you make a small change in the lifestyle this year, you will see a massive change in the long run. For example, taking public transport or car-pooling instead of a taxi to travel to work, packing your own home-cooked lunch box instead of ordering food online.

It is hard to control our minds in the digital era where we are surrounded by attractive advertisements. To control the emotion, you must make a list of the things which you actually need. Cut-off items which are least needed from the list. At the end of the year, you will be shocked to see the improvement you made in terms of your finances.

No more Loans

Any kind of loan can make you feel financially insecure. But most of us still borrow money to maintain our lifestyle. This is totally opposite in the case of a millionaire. Rich people spend money on assets first, and later on lifestyle.

Most of us fall into the marketing trap of Zero interest loans. Such kind of loans impacts the monthly budget. This new year make a money resolution to not to take any kind of loan.

Tip: Try to avoid buying items that you get on Zero percent EMI.

In case, if you have pending loans, it is better to payout and get out of it. However, some loans are fine like loans for starting a business or buying an asset or property.

Some of the loans you should avoid:

  • Debt Consolidation Loans
  • Auto Loans
  • Personal Loans
  • Payday Loans

Getting a Life Insurance Plan

You might consider buying an ideal life insurance plan for you and your family this year. Most of the survey pointed out that most of the individuals are not aware of life insurance plans. You should have a life insurance plan at least 10x of your annual income. This will make your family financially secure in case of any misfortune.

Tip: Always buy a Term Life Insurance plan.

If you want to know more, consider taking the help of the trusted insurance agent or company. Most of the agents try to sell you different plans other than term life insurance, which they will be getting high commission from. It is always better to insist them for term life insurance plans only. Stick to it!


These simple money new year resolutions make you financially free. Try to convert these resolutions into the habit. You will thank me, even if you pick the one this year.