New year, new beginning—this is often the mindset with which we start the year. We promise ourselves to live healthier lives, to be more financially sensible, to be better and more generous, to find time for the people close to us… Whether we keep our own promises depends entirely on us.

Here are our five suggestions for New Year’s resolutions which, if followed, are a solid foundation for financial well-being.

1. Invest in yourself!

There is no better way to achieve success—including financial success—than by investing in yourself: developing and acquiring new knowledge, skills, and competencies. In doing so, you will not only become an increasingly valuable professional or develop your business more successfully, but you will also open the door to new opportunities. Think of this as a form of “insurance” as well—if you find yourself without a job, you will cope much more easily if you are a person with skills, knowledge, and qualifications.

2. Create and follow a financial plan and budget!

It may seem unnecessary, boring, or difficult, but creating and following a personal financial plan—and a budget as a tool for implementing that plan—are among the most meaningful things you can do for yourself and your loved ones. A financial plan is your roadmap to what you want in life. It answers three types of questions:

1. “Where am I starting from—what is my current position?”

2. “Where do I want to go—what are my goals?”

3. “How exactly do I get from the starting point to the destination—what tools are right for me?”

Knowing “where” you are on your personal financial map, in which direction you are moving, and at what pace means being able to successfully handle both the small and the big financial challenges in your life.

3. Spend less than you earn!

Good income is a prerequisite for a good life—this is true. But you also need to know how to manage your money well. Otherwise, it will never be enough! The first step is to discipline yourself to spend less than you earn. This will allow you to set aside funds to achieve your short- and long-term life goals.

4. Protect yourself against the “unexpected”!

Setbacks—small and large—are part of life, whether it is a severe flu, flooding from a neighbour, car damage, and so on. Dealing with such problems usually requires money. In most cases, unpleasant events mean unexpected expenses. Instead of relying on luck and knocking on wood, it is far more sensible to build your own financial protection. In general terms, this means having an emergency fund and insurance coverage appropriate to your personal situation. Among the key types of insurance to consider are life insurance—especially if you are the main income earner in the family; property insurance if you own a home; and comprehensive motor insurance and third-party liability insurance if you have a car.

5. Save and invest!

Think about your goals, your future, and the future of your children. Whether you will enjoy a financially secure life depends on you. One of the most popular pieces of advice is to set aside part of your current income and invest it—in other words, “make your money work for you.” There are many and varied options: bank savings, real estate, financial instruments, and others. It is well worth familiarising yourself with the world of investing.