Forget about going to the gym. A new year is for improving your financial situation! If this has been on your mind the last few weeks, but you don’t know where to start, here are four steps you can take to get going…
Stop overspending: Budgeting and automating savings are two great ways to improve your spending habits. But being mindful of what is influencing the smaller, semi-regular purchases you make can really help you curb the urge to spend. Whether it’s an overpriced cup of coffee in the morning or a DoorDash because it’s raining and you don’t feel like cooking, those little things can add up. Don’t believe me? Try not spending a single dollar on anything that’s not budgeted for one week and it just might open your eyes to the truth about your spending.
Plan ahead: It’s never too early to start thinking about those life events that aren’t going to come cheap. It doesn’t matter if it’s a large event like college or a wedding or a less intense situation like a family vacation. The sooner you start being mindful of the need, the easier it will be to handle it when the time comes.
Look back: Examining what you did right and what you did wrong in the past is a great way to improve your financial situation. If your retirement account isn’t where you’d like to be, then it might be time to increase your monthly contribution. If you weren’t exactly ready when multiple appliances conked out last year, then maybe you should be beefing up your savings account/emergency fund.
Give your money away: This might not sound like an obvious way to improve your financial situation, but giving to charity can not only have a positive effect when filing your taxes, but it’s good for the soul and can give you a lot of perspective.