Finances can be something great or something that creates great stress in people’s lives. It’s not something that we take lightly because although we all make money, learning how to spend and save, plan for retirement and emergencies, are at the back of the mind at all times. In order to prepare for 2018 to be your best take a look at some of the following tips.
Define the End Game, Have Some Goals
Sarr Pilosof Expresses that In order to create a working budget, you have to have a plan and see the end game. You can’t plan for something if you don’t have a goal in mind. So let’s same the goal is save $5000 by the end of the year. Now you have something to work with, to plan for. That being said you can have whatever your goal is going to be. Some split it up, place some in savings, and some towards debt. Whatever the case may be make sure to get it the plan, write it down and go from there.
Organization and Budgeting Go hand in Hand
Right, why should you be organized to have a budget? But you have to be. Make sure to have your budget wherever is more convenient for you, a place you will see it so that you have an idea as to what you are doing every month and where your money is going. You can use something electronic such as a spreadsheet, on paper, or even an app. Watch your money because if you are overspending, that means you aren’t saving, which inevitably means when an emergency happens you won’t be prepared. The more organized you are the more likely you are to create a cushion for yourself. And don’t wait on this one, really start this one now.
Don’t Set it and Forget it
Setting everything up for auto pay is easy, simple, and can give you assurance that your bills are getting paid on time every month. But don’t just leave it that way. Check on it every month, make sure that the money is in fact going where it has to and no surprises came up. Maybe you want to change the amount you invest somewhere, or change your investments, or even decide on another bill to pay down first. Whatever the case may be, don’t let it just run on its own. There still has to be oversight.
Reduce Expenses and Don’t be an Impulse Shopper
This goes hand in hand with a budget. If you have a budget (which you now should), stick to it. Sure there are certain things that will pop up but you should have been saving the money with the original budget and have the money to take care of the emergency. Also when you are out on a big ticket item, sleep on the decision, don’t just go say I like it and run with it. Take some time, consider the budget and take it from there. And reduce expenses. Do you really need the $300 cable bill, or the mani/pedi every two weeks, the weekly facials, etc. Sometimes you have to live below your means if you ever want those means to be higher. Cut out the eating out and bag a lunch, don’t go out so often (it is okay to say no to an invitation), stop buying so many things, and take a list to the store and stick to it. That’s the key. If you want financial success for the years to come start now. Build a workable budget that allows for saving and debt reduction (if necessary), and make your life more financial stable.