It’s a new year and with the start of a new year, we all start to think about the months ahead. Most people will want to get back on track(including me). This can cover a range of areas in life, including your finances. So, it’s safe to say that getting your financial life in order at the start of the year is a good idea. Being in a bad financial situation can be stressful and affect other areas of your life as I am sure we all know! It’s best to be conscious of your money throughout the year. A plan is something we all need to get through most challenges and this instance is the same.
Maybe you’re wondering how it’s done. Because when you’re in a bad financial situation you can’t see a way out. Plus when you’ve gotten into a set way with your finances and found some bad habits, it’s hard to break *cough* online shopping *cough*. So you need actionable steps to follow to be able to make changes. To do this, you’re going to want to consider all areas of finance. From your spending habits and living within your means to setting goals and growing your money, let’s take a look at how you can get your financial life in order.
1) Track Your Spending
When you’re buying things you need (or want) every week, you may want to keep an eye on where your money is actually going. It’s surprising how many people will enter a shop and leave having unconsciously bought a cluster of rather unnecessary items. Keeping track of what you’re spending leaves you with better control of what you’re doing. Some of the ways this can be done include keeping your receipts or tracking down your outgoings through apps. This is also an excuse to buy a new pretty notepad.
2) Create A Budget
As well as tracking where your money goes, you may want to learn to control where it goes. The way to do that is to set amounts for each area you spend on. This allows you to put money towards the financial areas you priorities. This is something I am going to be trying this year.
3) Assess Your Bills
A lot of people tend to have outgoings that are totally unnecessary. It’s a good idea to keep a hold of what’s essential. You can do this by cutting out anything you don’t need like unused subscriptions and too many takeaways. You can also look to switch necessary bills to bring down the cost.
4) Get On Track
You’re going to want to get back on track with your finances by living within your means. It’s important to know how much you are earning so you can keep your bills under that amount. If you are struggling, you might want to bridge the gap, with something like Buddy Loans, or reaching out to your friends and family in the short term. These kinds of things may help you stay on track going forward.
5) Start To Save
Saving! It is easy yet so hard to do! When things are going well or things are starting to look up, it’s easy to feel like you’re able to easily spend. But instead it’s important to start saving. When you start to live within your means and getting yourself out of debt, you may want to put money aside as safety net. It’s nice to have something to fall back on when a potential emergency arises. You may want to also save money for goals: perhaps you’d like a holiday, a house or a car. It always feels nice to have money tucked away!
So the next thing you might want to look at is investing. Instant access savings often offer low rates, but you can generally get a higher rate by fixing your money for a longer term. Take a look at the bonds that are on offer near you. Then you also have the stock exchange if you would want to invest that way.
7) Earn More
Pretty much every person on earth is interested in earning more money and there’s a bunch of ways to do it. The first of which is to aim for a pay rise at work. Another way of doing it would be to get a second job. Away from your job, you can always work on your own projects in the evenings or a weekends. There’s always a way to earn more if you work hard enough!
Have you got any tips? Especially when it comes to earning more money? Let me know in the comments!