At this or any time of year, it becomes vitally important to take control of your personal finances. So give yourself a clean slate and an opportunity to wash away the old, and then begin establishing fresh new monetary goals for yourself.
What you need to do is focus on your own current financial situation and make it a priority to make all of the necessary changes which you need to make. Begin by writing down which steps to take that will get your finances in order, and money flowing in the proper direction.
It’s important that you begin by setting realistic attainable goals which are within your grasp. Setting unreasonable unrealistic goals such as “get completely out of debt in 21 days” or “getting a big fat raise this month,” will just leave you feeling defeated.
But instead, make sound sensible smaller and more manageable goals so you’ll be able to progress through and complete them, and then move towards the next one with complete confidence, conviction, and motivation.
Sensible Ways To Get Your Finances In Order
• Begin By Creating A Budget – The majority of individuals are prone to overspending just because they don’t realize they’re spending so much cash, until it’s too late.
Then they’ll run back to mommy claiming that their credit card was compromised. It’s completely natural to see your savings dwindle because you need a few additional things to purchase this month, and then you promise yourself that you’ll pay it off once you get your next paycheck.
Although this may make you feel better temporarily, it’s not a good long term solution. What you need to do is sit yourself down and challenge yourself to develop a specific budget for the up coming month and year ahead, and then stick to it.
If you need assistance in keeping track of things, there are an abundance of usually free finance programs to help you keep on track. They’ll keep you on budget based on how much money you have coming in, and what’s going out.
• List All Of The Outstanding Debt You Owe – Perhaps the most painful to do, but you need to list all of your debt, including the one you owe to mom. Becoming completely debt free will usually take a while and is disciplined hard work, but it’s also possible and entirely worth it.
So as hard as it may be, you need to begin by listing all of the money that you owe, whom you owe it to, including what the interest rates are. What this does is it reveals your net worth.
Once you prioritize what needs to be paid off first and how you plan to do so, then create a new set of goals, such as a budget schedule to reduce any unnecessary spending, or increasing your income if at all possible.
When it comes to resolving your debt and eliminating it, don’t view it as it’s all or nothing. Continue to set smaller goals that you’re able to meet, and then make steady improvements a little at a time.
• Improve The Way You Track Payments – If you’re constantly losing track of when your most important bill payments are due, or if you simply forget how much money you have in your account and then begin writing NSF checks, you obviously need to adopt a better method of keeping track.
It can be as easy as attaching a calendar on your fridge with a list of all the due dates for the payments you need to make for that month so you won’t be late. Make sure that you label the payments a day or even a week in advance before the payment is actually due.
If that day comes and you can’t afford to make the payment, then at the very least make a note so you can somehow pay it before the due date passes. All of the additional interest or NSF fees can add up quickly as well as they damaging your credit rating in the process.
• Find New Ways To Save More – It’s no surprise that it’s easier to spend money than it is to accumulate it. But there are a few sensible ways on how you can effectively save money as well.
Make it an absolute priority to set up a savings plan to bank a portion of your money every month, so pay yourself first. This also involves finding better ways of making your money go further.
If you find that your grocery and food bill is escalating, for instance, then begin taking advantage of the weekly sales, or use coupons while at the grocery store.
If you think you’re ready to begin an investing program, begin by talking to your financial adviser regarding what type of instruments which are available to you. Challenge and then commit yourself to learning new ways of saving money.
• Develop A Plan For Your Future – Everyone regardless if they’re just starting out in the workplace, or are already successfully established, all need to realize they have something worth saving for.
This could be a first new home or a bigger one, your kid’s post secondary education, or that big happy comfortable retirement. We all have dreams and goals for our future, but will do nothing to ensure that we can achieve it.
So the sooner that you sort out and decide how to begin and activate these ideas the better. Then those dreams will become closer to reality. Financial institutions will have an abundance of valuable resources and tips at your disposal for saving and investing your money.
There are also various financial calculators on the Internet which will give you an idea of how to begin, how much you need to save, how interest works, allowing you to achieve these goals.