It’s almost time for the New Year: a time for making big changes in your life and setting new goals. Each individual has their own goals they're trying to accomplish for the coming year. They may start a new diet, try being more kind, or looking for a new career. But even though most people have financial problems in some form or another, they usually don't set any financial goals or resolutions to overcome them. Setting a financial goal or resolution could really turn your life around and alleviate some stress. Here are 6 financial resolutions to help get your finances in order, while staying organized!
A great way to maximize your savings is to create a financial diary. Create your own journal to manage your expenses. In this journal, you can keep track of upcoming expenses, bills, and everyday purchases. You will have a better idea of how much money you have to put together each month. This is a great way to ensure you're on time with your payments and make sure you have the money to begin with.
As we’ve said earlier in this article, many people start a diet as their New Year’s resolution. This is a great, healthy thing to do, but it won't help your financial situation. A resolution that you may not have thought of is a money diet. This means limiting your monthly spending as you would junk food for a food diet. If you spend $200 each month on non-essential items, try to bring that limit down to $100. You'll notice a huge change in your monthly savings!
Each week, take some time to sit down and dive into your finances. Take a look at the financial journal you have created. It will help you stay on top of your expenses and keep your spending under control. At your weekly check in, look into your bank account and review each transaction. Make sure you aren't overspending and write down how much you've spent each week. This will help keep you organized and prevent a stressful financial crisis from happening.
Each paycheck, try to have a set amount that you put directly into your savings. When you're swiping your credit card, you'll take money from your checking and leave the money in savings untouched. This will allow you to ensure that you have the money for your bills while also keeping a cushion for those just-in-case moments.
Swiping a credit card is so easy that we sometimes have the notion that it is “free money”. Make a resolution to keep cash in your wallet. Having a clear visual of how much cash is going out means you'll be less likely to spend. This resolution will save you huge amounts of money with the coming year.
Staying on top of your credit score is non-negotiable. It is an absolute necessity. It’s a way to see how you are doing financially and if you are keeping on top of your debt. If your credit score is low, it may be due to late bill payments, having too many credit cards, or maxing out lines of credit. This score is important if you need to purchase a home or car, or take out a loan/credit card. There are websites like Credit Karma to keep on top of your credit score for free. This site also generates a free report on why your credit score has gone up or down, which can be very helpful whether your goal is to improve it or maintain it.
If you find yourself trying these tips, but still have a large financial debt, try looking into title loans. This may help you get you back on your feet, without putting yourself in a deeper debt. Happy Saving, and Happy New Year!