Or maybe you’re more like the rest of us. Did you envision saving more? Paying off debt? Investing? Cutting back on eating out? Planning for retirement?
Well you are in good company, because I am going to walk you through 6 steps you can implement today, to turn around your expenses in the upcoming year. By simple, I don’t mean easy. By simple, I mean, you can start today, and in the passing months, you will see tangible improvements.
ASSESS YOUR MONTHLY EXPENSES
The only way to make changes is to know, to really know, what your expenses are. Gather all the information regarding your expenses in the previous month.
You will be surprised at how eye-opening this information-gathering session will be. It might be painful to see the hard, cold facts, but this is the first step to catapult you into financial success.
BUDGET, BUDGET, BUDGET
If you need to decrease spending, the only way this will happen is to create a budget. Having assessed your monthly expenses, you will have a better idea of what budgeted amount is reasonable for various categories of spending and also where you want to cut and make changes.
Creating a budget allows you to cut back spending where need be, and also to have control over your spending and saving.
Debt is a harsh reality for most Americans. Whether you find yourself way in over your head or juggling a couple, manageable payments, it is vital to understand the amount of your debt and particulars of each loan.
In order to turn around your finances, you’ll need to begin paying off debt, and also stop adding to that debt.
One key to this step in turning around your finances this year, is to know your credit score. This information is vital when it comes to planning for your financial future.
SELL WHAT YOU HAVE
One way to create income without expense, is to sell what you have. Go through your closet, jewelry box, and basement. Get creative. Have a yard sale. Sell on Craigslist or your local Facebook Yard Sale page. You’d be surprised at how much money is lying around.
PLAN TO SAVE
Each of us has our own, specific spending and saving priorities. Some choose to “live in the moment” and have experiences and travel. Others prioritize saving for their children’s education.
Set goals; those things you want to save for. Follow your saving plan. You will find it rewarding to see the money in the pot accumulate.
While you may not know the ins and outs of investment, don’t stop there. Don’t allow naivete paralyze you. Take that lack of knowledge, and do something.
Enlist the help of an expert. This will save you a lot of headache and even worry, and in no time you’ll have a very good handle on how you want to invest your money.
While you won’t be able to turn around years and years of bad spending habits overnight, I’m confident that these steps will help you take big strides in turning around your finances.
As you apply and stick with these tips, you will grow in leaps and bounds, as you take control of your finances.