With the end of every year comes the chance to make the next year even better. That’s the spirit of a little tradition called the New Year’s Resolution.
For a lot of people, that means joining a gym or committing to a diet with the ambition of dropping weight or improving their general health. Improving physical wellness is an excellent goal, but what about your financial wellness?
No matter what your financial situation may be, there are ways to improve your situation and be better prepared for the future. Whether you’re thinking about buying a new home in 2018 or planning for retirement in the next year, here are a few steps you can take to make 2018 great.
Let’s start out simple. One of the best ways to shore up your financial situation is to reduce unnecessary expenses. This doesn’t mean eliminating the fun, just tightening the purse strings a bit.
If you’re a dependent coffee drinker like me, one simple way to trim is to cut out those extra trips to your favorite coffee shop. Even packing a lunch instead of going out to eat can help create a little wiggle room in the budget.
Think about cutting back on other possible extras like:
- How much you eat out
- Digital and print subscriptions you have
- How much you shop for clothes and home goods
- Buying only brand name items instead of generic
Turn Your Free Time Fun Into Income
While we’re on the subject of creating wiggle room in your budget, few things are more effective than bringing home a little extra money. A second job is one way to do it, but what about your hobbies?
Sure, not everyone is capable of creating a masterpiece from a scrap of wood, but take stock of the things you enjoy doing in your free time. Your hobby, whether it’s blogging, crafting, cooking for others or fixing up cars for friends, may be the path to building some savings.
Build that Savings
Putting away money for the future is an excellent way to improve your financial situation – and it may be easier than you think. By managing your expenses and reducing debt, building a savings account for unforeseen expenses or big purchases can be a realistic goal for most people. Plan ahead, build a budget with savings included in it and before you know it, you’ll find yourself building up savings.
Budgeting – a Roadmap to Success
While it seems simple, building a smart, realistic budget is crucial to establishing financial security. Money is tight for a lot of families and saving money is always easier said than done, but you have to start somewhere.
By calculating your income and comparing it against your monthly expenses, you’ll be able to identify the areas where you can reduce spending and start saving.
It can be a challenge, but with the right motivation of your goals for homeownership or retirement in mind, there’s no better way to kick off your resolution and move towards a financially successful year.