2. Do the debt clearance

If you have debt, let this be the year that you seriously tackle it. It’s alright to be in debt but there is a difference between healthy, manageable debt and the kind of unhealthy debt that keeps you from going on with your life.

When clearing your debt, it is important to realize that you need to strategically prioritize your payments. While you should always pay the minimal payments on every form of debt you have, you can increase your efforts in certain areas to get rid of debt more quickly. For instance, credit card debt that has a high interest rate needs to be cleared first. If you only ever make the minimal payments, that debt will follow you for a long time. So if you have extra cash to put towards debt clearance, put it here.

3. Start an emergency fund

Set up an emergency fund first before anything else. While most financial planners advise saving from three to six month's salary, more is better. That’s the average amount of time it takes to get a new job.

It also comes in handy for vehicle repairs and hospital bills – you never know what could happen. An emergency fund is like a buffer that will protect you in any situation.