Happy New Year! It’s time for celebration, reflection and costly new year resolutions.
And the process might not be new to you at all. Every new year brings a dose of optimism that pushes people to seek personal and professional development, which is admirable. But it also can stretch your budget thin if you seek too many endeavours. So before you get carried away with enrolling for those fitness classes or continuing-education courses, make sure that you know how you will pay for them.
The first step should be to set a budget for your new year resolutions, and differentiate between resolutions and purchases that are advertised to make your life better. A new car, a mattress or a television is unlikely to bring in the change you’re looking for — even if the seller is promising so.
Here are a couple of points to make sure that your new year budget can fit your resolutions.
Defining resolutions
It is easy to be carried away with all the promises thrown at you at the beginning of the year. Almost every retailer and every store has a way to spin its product as life-changing. Your goal is to decide what changes you actually want in your life.
Take weight loss, which is typically a goal for many people. If that is again on your agenda for 2017, think of what can you do differently this year to achieve it. Is it joining a gym, a weight-loss program or seeing a dietitian-nutritionist? The solution might be a combination or just one of these options. But it is certainly not everything that is coming your way in ads, commercials and sales reps in mall aisles.
The point is: Define your goal; identify your options and see what works for you and how much it costs before spending any money on any of them.
Set a budget
As always, you will need to think of where the money is coming from. Will you channel part of your disposable income to pay for this new class or course? If yes, what will you give up in return. Are you going to reduce your monthly savings to afford this new expense? How is that going to impact your savings plans?
If you’re running paycheck to paycheck, this additional cost may be even more critical, especially if the cost is significant — like thousands of dirhams a year. Adding this cost without planning may just mean an additional charge on your credit card that you will have to deal with it coupled with interest payment later.
Think free or low cost
Because new year resolutions are often pushed by retailers and service providers, the solutions are often products or services. Back to the weight-loss example, the solution could be simply in following a healthier lifestyle, better diet and more workout and physical activity — even outside of the gym. This solution could be easy on your budget as it hardly adds any new expenses, although it requires better discipline and consistency.
Similarly, think of solutions that are low cost. If travel is one of your new year resolutions, think of closer destinations and budget accommodation. If your goal is to learn a new skill or a hobby, find online courses to save time and gas, seek free resources online and in your community or get help from a friend.
Especially when you’re trying something new, try not to go out and spend a bunch of money until you’re sure it is something that you enjoy and you’d like to pursue further. In addition, avoid subscribing or joining an activity just because it is popular — are you really into Zumba?
With limited money and time, you must choose wisely the activities that most appeal to you and are likely to keep your interest through this year and beyond.
