With us slipping into another new year, maybe we could make some money resolutions this 2018. Do these 10 things to control your financial situation and start the New Year without a money crisis.
- Set a financial goal or the year. For example, if you wish to buy a car this year, make sure you save a fixed amount every month and this amount stays untouched you until you’ve gathered the total sum you require to buy that car. You could break your big goal into multiple small goals for each month and set calendar deadlines accordingly.
- Plan a budget for each month. This is something you should have been doing the whole time, but it’s never too late. Make a list of all your possible expenditures for the month, all the bills, and all the extras that you could account for the coming month. Accountability for your money gives you financial stability.
- Keep a weekly or monthly money journal. Along with your monthly budget, it is equally important to monitor all the cash flow and note down all your spending’s and saving alike. You should also keep a track of your net worth, which does not include your working income so that you get a bigger financial picture of your wealth.
- For the credit card users, make sure to make your credit card payments rather than paying them monthly. This helps you to spend as per your budget and also avoid excessive credit card charges.
- Ask for receipts and bills every time you purchase something or go out for a meal. These can help you with the money journal.
- Lower your credit card usage, and switch over to paying using actual cash or even debit cards. This allows you to be more cautious about your spending’s, since you will be more present about your transactions.
- Get organized. Not just money-wise, but organized your emails, books, documents, drawers, everything. It helps to be peaceful and focused.
- Open a savings account, if you already have one, and for those who have one, start using it. You could go for automatic money transfers from each paycheck every month, save about 10-12% of your salary each month, and make sure you don’t touch it unless it is an emergency. Also every time you get a bonus pay, or overtime pay, make sure this money goes into the savings account too.
- If you spend a lot during one of the holiday seasons, go for a no-spend month to balance it out.
- Get necessary health insurances to avoid big heaps of health bills piling up in case something goes wrong.