The new year means a new beginning for a lot of people. Everybody is looking to dismiss their old habits and start fresh. For many, this means eating healthier, exercising more, and going after their dreams. Another common new year resolution is getting your finances in order. Break those bad spending habits, start saving more–even invest! Below are some tips to make the transition into a new financial future much easier.
Set a SMART Goal
This is going to be the most important step in getting your finances in order. Make sure to set a goal that is “S.M.A.R.T.” This stands for specific, measurable, actionable, reasonable, and timely. Make the goal specific because if you make a goal too vague, you don’t know when it’s truly been reached. Make the goal measurable so that you can track your performance. This is an easy one since the goal will be measured in dollars. Actionable means that the goal should be something that you can actually implement right now. Don’t waste your time on a plan you can’t start right away. Also, make sure this plan is reasonable. Make sure that the plan is something that you can and will actually do. Make it fit into your schedule, and make it easy enough that it doesn’t become too difficult to carry out. Lastly, make sure that the goal is timely. Set a specific deadline for the goal to get the show on the road.
Make a Budget
Take the time to sit down and figure out exactly how much money you are going to need and where it’s going to go. You’d be amazed at how simply writing things down can make all the difference sometimes. If you are unsure how to make a budget, visit our step-by-step instructions.
Stick With It
People often lose sight of their new year resolutions far too early and end up never accomplishing them. Set benchmarks for yourself so that you have to reach them within short periods of time in order to stay on track. A little bit of saving at a time will add up in the long run. Make sure you don’t have to start at square one next New Year!
