The holiday season is the worst when it comes to saving money! Yeah, you have been there and faced that. Well, we feel you because our measly savings all went down too because of our overzealous spendings in the holiday season. But then new years are all for new beginnings. So, in case you don’t want to repeat last year’s money mistakes, then we give you some novel ways to give your finances a makeover.
Switch To Cash
Is plastic money making you spend more? Research supports the idea that you usually do not want to part with your hard cash when you spend on something. However, you usually do not think much about spending when it comes to plastic money. It is just not that hurtful. So, this year, try and think more about the amount you spend.
When you get your salary, ensure you divide the money as per varied requirements. For instance, have separate budgets for entertainment, pocket money, restaurants, etc. Once you make different envelopes and allot different amounts to each category, you will stop yourself from spending more when the envelopes are empty. There you go, it’s that simple.
Think Before You Buy!
How many times have you gone to a store and ended up more than you intended? Sometimes, you end up buying things you want, and when the novelty of buying something wears thin, you start regretting your rash action. Research says at least five out of six shoppers buy things on a whim.
Here’s what you can do, add things to your cart and then wait till at least 15 days or even more to buy them. Well, you can delay big purchases, but unfortunately, you cannot delay small purchases. It is only then, that you can figure out how badly you need the stuff. We used the word, want not, need. Also, who knows, by the end of the waiting period, you may even get the product you wanted at a discount.
Pay Down Debt
Do you want to put a big dent into your debt this new year? Well, you may grab debt by the scruff of your neck and address concerns about the interest rate first. But, it is more than maths to win over the interest rate.
The only way you can stick to a money resolution is when you are encouraged by your progress. List out your debts by the balance and go for the smallest one first. Then roll out your cash for the next debt, eventually reaching for the biggest one. You’ll also find motivation and momentum to help get your debts down and get your cash flow up.
Track Finances With A Spreadsheet
There are various ways to keep a tab on your financial information. Tools like, MS Money, Quicken, and YNAB will track your financial information. However, you can try the free ones, on your desktop or online, to accomplish the very things for you.
The best way to do this is to try Google Docs and Spreadsheets, which can track your spreadsheet and bank accounts, which can substitute expensive apps. You have everything, each nitty-gritty detail, right from details of each transaction, the amount, the title, a little field for memos, also a running balance.
Be Financially Aware.
Money equates big time worry. As per the American Psychological Association, 72% of adults worry about money troubles, at least sometimes. When there are too many money troubles, it may act as a deterrent towards a healthy lifestyle. Too much stress can also impact your way of working. In such cases, a financial wellness program can fix things for you, sort out your financial woes, and help you edge towards your financial goals.
If the company you are working for offers such benefits, then take the opportunity to learn more about money matters. You can learn how to manage your money better in the new year and improve your financial health. Also, money mistakes in the past year can help you avoid money mistakes in the future. So, take stock of personal money matters, and you can fix things up or make things better this year. This year be financially wise and save yourself a good amount of money for your future.