What kills new year financial resolutions

By Caroline wambui

It's yet another time when we have to focus on new year resolutions with the hope they will hold till December 31.

For financial goals to materialise we need to prioritise our goals, employ discipline, plan well and respect the commitments we make.

Quite often we find ourselves deviating from the norm, may be due to our ignorance, which makes us develop a don’t-care attitude towards finances — and what follows is a memorable experience of wishes.

Over-indebtness, living beyond one’s means, lack of a saving plan, and the list is endless. These reasons make people to take up loans to cover up for their financial mess. What we need to realise is that we can never rely on scapegoats forever. To manage finances better, we need to work on the following:

Need for quick fix. People who look for instant solutions often lead disappointed lives. We need to get rid of our bad habits to avoid falling prey to banks. Sometimes walk in to a banking halls wanting instant cash fast, but what we don’t realise is that the faster the speed, the higher the cost of borrowing. Marketing managers and sales representatives may not reveal the hidden charges, and you are left feeling the pinch as they (bankers) have a target to hit.

Daily lives

Lack of proper information. Knowledge is power and financial literacy is vital in our daily lives. Right information helps one make proper decisions from budgeting, savings to investment.

Isn’t education the key to success? When we lack it we become ignorant and instead of seeking professional advice, we consult any Tom, Dick and Harry who can only offer their own opinions. If one thinks that education is expensive then ignorance is more expensive as one is only bound to make great mistakes.

Lack of discipline. When there are no guiding principles in an individual, life becomes chaotic. Such people want to do everything but they are committed to nothing. There is no consistency in their lives.

Feel good

Attitude. Right attitude helps individuals conquer all odds. When we feel good, everything goes up – performance and relationship. Some people attribute success and failure to luck, but there is nothing that comes easy it’s as a result of struggle.

Change must start with us, learn to develop a positive attitude towards finances, start doing what is necessary and before we know we are doing the impossible.

In terms of savings, start by having a bank account, save the little you have, employ discipline, believe that you can and before long the account will have a significant amount.