The New Year Resolution You Should Have Every Year.
Every New Year we tend to choose the same resolutions such as losing weight, being more active, or setting unrealistic goals. However, not too many people decide to make their resolution financial goals. Many people make goals but do not lay or plan how they are going to reach those goals. Financial planning is something that should be thought of all year and not just when things go wrong.
This New Year Start a Budget…but First Reflect on the Past Year.
The New Year brings a clean slate where we can plan and make adjustments. Setting a budget is important because it also makes us reflect on our spending habits from the last year. It is important to not only reflect on the previous year but to also take a moment to see where your money went to. Many bank apps now have features where you can see a breakdown of how much you have spent on different categories such as: eating out, bills, groceries, transportation, etc. Applications such as these can make it easier for you to see what you’ve spent, and how to adjust your spending for 2020. It’s never too late to set a goal for yourself.
Get out of Debt
As mentioned earlier, the New Year usually brings in a clean slate- but that is not always true, especially when it comes to our finances. According to the Federal Reserve Bank of New York, last year in February 2019, “Credit card balances rose by $26 billion to $870 billion.” Credit card balances are not the only type of debt, but can definitely take a toll on folks due to interest rates. This is why this is the perfect time to set a goal for paying off your debt and taking control of your finances. Things you can do to complete this goal is to have this plan set up in your budget, that way you can spend less, sell unneeded items and get on track to being debt-free.
If anything there is anything more daunting then paying off debt, its saving money. Saving money is always a hard goal to have because we much rather have that money now, and spend it now. However, saving money is something we should all be doing. Saving at least 10% of our income every month can add up quickly, and that money will always be beneficial to us. When setting up your yearly budget you’ll want to make sure to add a goal for your savings. These goals can even be small, on a monthly basis, so you can make small cuts but eventually have big savings.
Educate Yourself on Money and Finances
Budgeting is something that is definitely difficult, can be made easier when we have someone holding us accountable. There are also many blogs, webinars, and events you can seek out in order to educate yourself and make smart decisions for yourself and family. In fact, hiring a financial planner is a great idea if you are making big money decisions that year and need professional help navigating how to start and what steps to take in order to save money.
Everyone has a different financial situation coming into the New Year however, setting a budget and saving money is always a good thing to strive for. Here at Karla Dennis & Associates, we want our readers to succeed at their goals and live a happy life. Tips like these are to remind you of ways you can make small changes that will make a huge improvement in your financial life.