For many people, the new year brings an air of hope and a brand-new start. This is why many people make lists of New Year’s resolutions to help them get on the right track. This can serve as a guide and inspiration, especially for people who like to plan things.
These resolutions usually contain lifestyle changes, some of which can include financial matters. After all, there is no better way to start the year than to create a plan regarding your finances. It is another year, another chance to create a brand new lifestyle to help achieve your financial goals.
Not sure what to include on your list? We have a few great ideas to help you improve your finances in the new year. Consider our ideas below or be creative and think of some of your own as well.
Keep Track of Your Spending
One awful mistake people often make is failing to keep track of their spending. Usually, people allot a certain amount for, say needs and wants. This is actually a good thing. However, you tracking your spending each day can help you reflect on how much you spent and how much you can save by making changes.
Now, we know that it can be inconvenient to list down how much you spend and what you spend on every single time you make a transaction. However, this can help you identify where your money is going. Does it go to necessary purchases? Perhaps it goes to luxuries you cannot afford. By keeping account of your transactions, you will know what you need to change when it comes to your spending habits.
It is not too late to implement new habits by tracking your spending. As part of your new year resolutions, you can write down your daily and weekly expenses so you can properly monitor how much you are really spending. This way, you can see if there is a particular habit you need to correct, like buying coffee every day or pizza every Friday
Stick to Your Budget
We mentioned budgeting briefly in the first resolution because it is one of the most common ways to manage your finances. You surely set aside amounts out of your wage or salary. For most people, it is effective to categorize your money by wants, needs, and savings. You might also prefer the 50/30/20 or 80/20 schemes, which allow you to set limits on how much you spend.
Now, keep in mind that creating a budget is a good first step. However, what’s worse is if you keep on breaking your own rules. If this keeps on happening, then it may be time to rework your budget and give yourself a break and some leeway. If you think your current scheme should be effective and what you lack is discipline, then you might need to change your attitude and habits. You can also try to create a budget worksheet so you will have a clear vision of where your money goes. This way, you can set your budget properly. It is important to set a budget that is realistic for your income ad desired lifestyle. If you value going out with your friends on the weekends, then don’t cut that out of your budget.
Identify and Fulfil Your Financial Goals
Lastly, you need to make sure that you place your money into productive activities for the next year. You can do this by setting financial goals and working to achieve them. Whether you want to save a specific amount in your bank account or you want to invest in a financial vehicle for the next year, this kind of plan should definitely in your list of New Year’s resolutions.
A great thing about setting goals and working toward them is that you can rethink your financial practices based on them. Do you want to accumulate a set amount of money by the end of 2020? Then you need to create a budget that can help you get to your goal. You might also need to cut down your expenses, which you can do by tracking them and making changes accordingly.
By adding these promises to your New Year’s resolutions list, you can start your year prosperously and with increased chances of being financially stable in 2020. Set goals that are valuable and realistic for you. Who knows? You might just reach your goals and more by doing so!