With the new year comes resolutions and for many, organizing their lives. Most people focus on their health when the new year begins, but I want to help you with getting your finances in order.
When you get your finances in order, you improve the chances of reaching your goals. You also lower the stress that money has in your life. So why wouldn’t you want to start working on getting your finances in order?
Here are a few tips to help you with getting your finances in order for the new year so you can achieve your financial goals.
4 Effective Tips For Getting Your Finances In Order
#1. Review Last Year’s Spending
If you aren’t budgeting your money, you need to start. I know that budgeting isn’t sexy, but it is a necessary evil if you want to be on financially stable ground. Instead of looking at a budget as a negative thing, look at your budget as a positive thing. We tend to see a budget as limiting our spending. Start to look at it as a path to reaching your goals, whether they are retirement, a new house, or a dream vacation.
For help with getting started with a budget, check out this step by step post. You can also use the calculator below to see how your spending compares to others in your area.
If you do have a budget, look over your spending from last year. Where did you overspend? Did you save enough? Maybe you have a new expense that you need to account for.
Whatever the case, the only way you are going to get ahead is to review what you did previously, adjust, and improve. It’s how you get ahead in any area of life.
#2. Start Saving
Most of us don’t save enough money. In fact, many of us save nothing. This has to change. The fatal flaw most make is that we spend first and save what is left over. Sadly, many times what is left over is zero. To change this, we need to save first and spend second.
I personally do this. I have transfers set up from my checking account to my savings accounts every time I am paid. The money goes right into my savings account that day, so when I look at my checking account balance, I never miss it.
I am free to spend every last cent in my checking account. I can do this without worry since I am still saving money every month.
I urge you to try this. In fact, I would suggest those that hate to budget try this method out. It is a simple solution to get you to start saving money. I suggest you start out transferring 10% of your pay into a savings account every paycheck.