Did you know that 80% of New Years Resolutions fail by February? Ouch. If one of your resolutions is to meet your money goals, chances are you can’t afford to let this one go.
Read on for our top methods for managing your finances and creating a powerful spending plan.
Know What You Spend
For those who feel like they are living paycheck to paycheck, there’s a mysterious void as to where the money even goes. After all, when you know you’re tight with cash you avoid major purchases. So, where is all of your money going?
This is the first thing you’re going to want to find out.
In your mind, you might not be spending a lot, but there could be areas you aren’t noticing. For example, you might be eating out more than you think, or there may be small purchases (like coffee or cigarettes) that made frequently enough make a major dent in your bank account.
Many people are signed up for multiple services they don’t even know about, thanks to “free trials” that roll over into memberships when you’re not paying attention. Take a month to track all of your spendings and see if you can find where that extra money is going.
Create a Buffer
It happens to all of us. You work and earn money with the intention of paying off debt, adding it to your savings account or investing. Then suddenly your car breaks down and you have to replace a part, or you’re hit with an unexpected bill. You go through the same cycle again and again, what you need is to create a buffer.
This means taking extra cash (whether it’s from your savings or from a side gig) and using it to pay at least one month of bills ahead of time. This will give you some breathing room in the event of an unexpected bill or situation.
It will also allow you to stay on track with your saving plan, no matter what life throws at you.
Know Your Credit Score
If you’re struggling with money, it’s likely you’re avoiding taking a look at your credit score. However, it’s important, and if you want to get your finances in order this year you’re going to have to do it.
The important thing here is to be aware of your situation There could be outstanding payments affecting your score that you’re unaware of, that needs cleaning up. There can even be an error on your score that you need to resolve.
Once you begin getting your credit score on track, you can start applying for low-interest payment solutions that can help you clear your debt.
Utilize the Right Apps for Your Money Goals
There are so many apps currently available to help you align your finances.
Our favorite are those that keep an eye on where your money is actually going. For example, if you own a business and manage your own payroll, it could be difficult to properly keep track of your numbers and taxes, and even the smallest errors can cost you money.
Using a pay stub maker can help you streamline the process and save money.
Apps like Mint also link to your debit and credit cards to alert you when you’re about to go over your budget in specific areas like food shopping or entertainment.
Commit to It
The most important factor for meeting your money goals is committing to the process. We suggest diving into finance books from gurus you admire, to stay on track and discover new methods for staying on top of your spending.
Remember, if you want to be apart of the 20% that achieves their New Years Goals, the more you know the higher your success rates. Check out our articles on money and finance to arm yourself with the information you need.
