The New Year means a fresh start, and if you’re thinking of pumping up your financial game, then this is actually a good time to do so. Take advantage of the motivation that the season’s giving you and take charge of your money once and for all.
Don’t worry, I am also well aware that this is also a season when people are most prone to get demotivated and fall flat on their faces with their resolutions getting thrown under the bus after only a failure, or two…or more. So, this year, in order to spare yourself the unneeded drama, here are tried and tested tips coming from financial experts themselves.
Start Tracking Your Spending
Since we all get a fresh start, it’s also the best time to start tracking your spending. You don’t have to be an accountant to do this effectively. Thanks to genius developers there are already more than a dozen apps that you can download for free to help you do just that.
Set Short-Term Financial Goals
Have a big financial dream? Break it down into simple and short-term financial goals. For instance, if you want to have a million dollar savings account, you can start by setting a goal of saving a hundred dollars this month. It’s small. It’s simple. And most of all, it’s easy to do. Again, there are a lot of apps that can help you out with this.
Build An Emergency Fund
Everyone wants to become debt-free. Everyone wants to invest on something. However, it’s still best to set up an emergency savings account first before even thinking of achieving other financial goals. Why? Because life happens. You’re paying your debts then all of a sudden the car breaks down. Before you know it, you’re borrowing money again. You’re investing money on a seemingly profitable start-up. Someone gets terribly sick. And just like that, poof, the investment money gets withdrawn faster than you can say “oh no”. The secret in order to accomplish all of this? Set up an emergency fund as fast as you possibly can. Prioritize this first. Put all your money here until you ramp up an amount that’s worth more than three months your monthly salary. With this account as your safety net, you’ll never start worrying that a sudden life event would ruin your financial goals ever again. You’ll be able to pay off your debts without creating new ones.