Financial resolutions must be made as we approach mid-2018, it’s an opportune time to make sensible and creative financial resolutions that will help you realize your five-to-twenty-year goals faster. One might think that making a complete overhaul is needed—but to be honest, simple adjustments like budgeting personal loans can propel you closer to your dreams.

Here are some of the most practical financial resolutions you might want to consider:

#1: Create a SMART Budget

No one can underestimate the power of good budgeting – which means spending within your means – with allowance for future gains. If you are planning to apply for personal loans, use it wisely.

Write down specific expenditures, from food to retirement savings per month. Make it measurable by appropriating certain amount – with a few allowances for inflation and other extra expenses. And, don’t forget that an attainable budget is the key to financial success. Don’t develop a budget that you cannot accurately follow. If it’s too hard to limit your expenses within a specific range — how can you keep it?

For example, if you’re earning $3000 a month and you allotted 80% to your expenses, why not set aside $1000 instead of $600 for your savings account? If you’re able to follow that budget, then you can increase it gradually, until you reach the amount that you intend to save.

Another tip to get your finances in order quickly is to avoid “overspending” in the real sense of the word. So, make sure you have a good idea of what is the realistic cost for a certain activity or item. Will you spend 20% of your salary for a brunch with friends? Weigh it depending on the circumstances, and you’ll do just fine.

On top of that, make your budget, time-bound. Once you have a clear picture of where you are going to put your money on a daily, weekly and monthly basis, you can make informed decisions about appropriating your income.

Here are some helpful tips to get you started on developing a smart budget:

  • Set achievable short-term goals, like putting more money on your emergency fund, paying utility bills and credit card debts ion time, and so on
  • Set long-term goals and work your way up to it one step at a time
  • Update your budget per month. Take note of the areas that you struggle with-and those that you easily followed. Consider those factors when planning your expenses for the next month
  • Use budgeting apps to track your spending. Or, you can simply write it down on your planner and refer to it every now and then.

#2: Decrease Debt load

If debt has weighed you down in the last few years-don’t let it happen again this year. This doesn’t mean that you won’t apply for personal loans anymore. It simply means, using your debts wisely-not only to pay for your needs, to lessen the overall debt loads and interests. So, if you have a $10,000 loan with various interest rates and overdue fines, you can apply for debt consolidation loan to reduce the interests and increase your ability to pay them off on time. Prioritize debts with very high interests.

You can follow these tips when paying down your debts:

  • As your income increases, you debt should decrease. Thus, whenever you get additional income-like salary increase, tax refunds, extra payment or bonus, use the money to pay off your debts.
  • Determine which of your debts has the highest interest rate. If you cannot pay it in full, increase your payment each month—even if it means only a little over the minimum
  • Keep track of your monthly credit card balances and check which ones have the highest interest and fines. Pay them as soon as you can.

#3: Earn more money

Whether you want to build a full-time passive source of income, get an additional job or increase the ROI of your current business-no one can debate the fact that money makes money—even if it is borrowed. Build assets; invest in retirement plans and stocks to generate future income. You can also work on your skills and enroll in classes to increase your knowledge and productivity. Many existing businesses use the proceeds of their loans to buy productivity improvement software and equipment or to conduct skills enhancement trainings for their employees to improve the quality and quantity of their products.

EOFY’s Financial Resolutions must not be taken lightly. If it motivates you to get your personal finance in order—pursue them. Don’t let your bad credit discourage you—in fact, a well-budgeted personal loan can help you start the year right. Just be careful in choosing a loan product—it must meet be within your borrowing capacity a d it has no hidden charges that could take a huge chunk out of your payroll.