Every new year gives people another opportunity to set new goals, reconsider the bad habit from the past year, and apply their learnings from it. If this year has made you spend so badly, then maybe it’s about time to learn the proper management of your personal finances so you can experience the fruitful taste of 2019. This new year, learning to strengthen your financial foundation should be included in your list of resolutions. Here’s your checklist which will help you achieve your financial makeover in welcoming the new year.
Review your current spending habit
Make a short list from your minor to major expenses of the current year. Determine which expenditures are worth keeping and which ones must be taken away the next year in order to save you extra bread. Your spending habit from the past year lets you analyze your wins and losses and focus on improving your saving style over the next twelve months.
Map out your new financial plan
This method allows you to create adjustments when it comes to allocating your budget for the month. So after a complete review of your recent spending style, you are expected to come up with an improved financial plan that will serve as your guide for smarter spending. This time, You have to make sure that the plan’s goal is to spend less and save more.
Consider additional sources of income
Open yourself from new opportunities. If you have pieces of fresh ideas in mind, then do not hesitate to let them out and turn these ideas into something that truly exist. Start investing in attainable startup business ideas and other additional streams of revenues such as part-time jobs, garage sale, or skill-related services.
Separate fun from hard expenses
It’s important that you know how to separate the fun part from the hard part of spending. The fun part refers to the leisure and luxuries while the hard part is to pay off the bills and save what’s left instead of spending it.
Settle your debts
Start the year right by settling your unpaid debts from credit cards, peer-to-peer loans, or mortgages. You can also review these financial aids, their benefits, as well as the disadvantages so you can decide whether to keep or cut down on any of them in order to help you spend less and accumulate extra fees.
Choose annual payment mode of premiums
If you are insured, you can request to change your payment mode of premiums into an annual method instead of a monthly basis. This helps you lessen your burden of making tons of payments from month to month.
Save, save, and save again
Make saving a permanent part of your daily life. There are so many ways on how you can save your money but, first, make sure that you choose a savings bank that offers higher interest savings rate. Also, try to keep at least 5-10% of your monthly salary to help you create bigger wins. Remember that your salary should be bigger than your expenses.
Doing financial makeover comes with a strict plan and a constant action to it. You don’t have to get intimidated by the makeover process. Remember, strengthening your financial foundation may not be easy at first but you can always take it to step by step until you get used it.
By: Sarah Contreras
Sarah holds a bachelor’s degree in Communication with expertise in marketing and media management. She currently works as a full-time blogger for business-related issues. What motivates Sarah to keep writing is her passion of providing information to all readers out there.