Flourish Health & Wellbeing eMag - Jan 26 - Flipbook - Page 46
STEP 2:
Curate your reset plan
Here’s how to build a sustainable 昀椀nancial reset:
Trim the tail
• If you s琀椀ll have lingering expense
commitments (subscrip琀椀ons you forgot to
cancel, gi昀琀 packs yet to be used, etc.), cancel
or pause what you don’t need.
• If you over-spent during the holidays and are
carrying a balance on high interest credit, raise
the priority on repayment.
• Adopt what is o昀琀en called the “14-day rule”:
for non-essen琀椀al purchases ask “Do I s琀椀ll
want/need this in 14 days?” If yes, revisit; if
no, let it go.
Re-build your buffer
• Create or top-up an emergency fund (e.g.,
su昀케cient for 1-3 months of essen琀椀al expenses).
• Start small: even $20/week adds up over
the year.
• Automate your savings if possible. Once it’s
automa琀椀c, you’re less likely to forget.
Re-align your budget
• Update your budget to re昀氀ect reality: income,
昀椀xed costs (rent, u琀椀li琀椀es, mortgage), variable
spending (food, travel, leisure).
• Allocate le昀琀over money to priori琀椀es: debt
reduc琀椀on, savings, then discre琀椀onary fun.
• Consider the “50-30-20” rule as a rough guide:
50 % essen琀椀als, 30 % wants, 20 % savings/debt.
You may adjust based on your situa琀椀on.
Build sustainable spending habits
• Before booking your next holiday or big
purchase, set aside a savings pot dedicated to
it. That way you avoid relying on credit.
• Use the “pay yourself 昀椀rst” principle: treat
saving like a 昀椀xed cost.
• Be realis琀椀c with discre琀椀onary spending. The
holiday period is behind us; now the aim is
昀椀nancial stability, not splurge mode.
