We know, you hear it at the start of every year. Practice good money habits to help build a successful future, but, its true! If you start the year off with a plan for your finances, you are more likely to see positive end results.
1.Create a budget
Developing a budget for the year or on a monthly basis can help you keep an eye on your spending. In addition to planning for normal monthly costs such as rent, food and utilities, it allows you to earmark funds for when unexpected costs pop up. If you have savings goals, a budget makes life a little easier because it lays it all out for you to see. You’ll know exactly where your money is going.
2. Plan for the unexpected
It’s easy to plan for things you know are coming, but more challenging to do so when they’re not on your radar. If you have a car or home repair that was unplanned, it can have a significant impact on your finances. If you incorporate a small emergency fund into your budgeting, you will be further ahead in the event of an unforeseen cost during the year.
3. Set a savings goal each month
We know the thought of having to put money away in savings can sometimes be hard to do. However, saving even just a small amount each week or month can really accumulate by the end of the year. If you start the year with a monthly savings goal and hold yourself accountable, you will be surprised with the end result!
4. Check in and adjust accordingly
Like all new year’s resolutions, sometimes they are easier said than done. By practicing some strong financial routines, you can really benefit in the long run. After you put in place steps 1-3, make sure you follow through on your plan. As life throws curveballs, adjust these goals based on your financial situation. The more you stick to the budget, the more it becomes a habit.