New year, new you, right? Maybe some of you have put together resolutions that revolve around money management this year. 2018 is the year you really get your finances in shape and start being more conscious of the money you have.
Now is as good a time as ever to start planning and reviewing the way you manage your money. So, here are some tips to kickstart your year and set you on course for a more stable financial life.
Start Tracking Your Expenses
Be honest, how many of you actually track your daily expenses? How many of you make a note of all the money you spend? Hardly any of us do this because we just can’t be bothered. At the most, we’ll skim through our bank statement to ensure there are no random purchases. This year, you should start tracking everything you do. It might amaze and shock you how much money you spend on needless things. This helps you figure out where too much of your money goes, and how you can cut down on spending to save money. Even if you run a tight ship and can’t pinpoint anywhere to save money, it will still make you more money-conscious and help you manage your finances better.
Plan Ahead For Your Retirement
Your retirement may be ages away for some of you, but that doesn’t mean it shouldn’t remain in your thoughts. It’s common knowledge that most state retirement plans are hardly generous. Even when you combine it with one your employer might offer, it’s still not going to give you enough funds to survive when you finish work. Here, you should start thinking about a retirement income strategy. Consider some investments that will serve you well over the years leading to the big day. Also, just start saving money too. Keep putting cash aside in the form of a private retirement fund. There are loads of places offering retirement funds and pension schemes that you should look into. The bottom line is; the early you start planning for this, the more stable you’ll be when the time comes.
Set A Monthly Budget
The last money management tip is one for the ages; set a monthly budget. This will help you stick to a regular spending pattern and guarantee you don’t go overboard. Don’t forget to factor in all the money you have to spend on essentials and also any money you’re putting aside to save. What you’re left with is your disposable income to use wisely. Budgeting is hard, to begin with, but you gradually get used to it and will realize how beneficial it can be to your finances.
I hope these tips provide a platform for you to start managing your money more effectively in the new year and beyond. My final piece of advice? Properly commit to all these tips! Don’t give up after a month or two like most new year’s resolutions. Being more conscious of your finances will help you both now and in the future, do it!