As the holiday season continues to drive 100 mph in the fast lane, participants cannot help but feel overwhelmed. From celebrations and decor dedicated to Christmas, Hanukkah, and Kwanzaa, to the intense competition to finish holiday shopping at record speeds, it is a safe assumption that credit/debit cards have been autosaved on favorite sites. Likewise, I am certain that wallets have been opened more than once for a few. However, for others with ironclad budgets, free-flowing spending has been minimal. Nevertheless, a common theme emerges – counting down the days until 2017 as a whole concludes. So, with under two weeks left until we bid a long-overdue adieu to the year, there is more than enough time to readjust your finances, so as to make the optimal money moves in 2018. To help you jumpstart your work, below you will find valuable financial tips:
Budget, and Budget Some More Essential to successful personal financial planning, budgeting should become an added addition to your 2018 routine. Thus, when your financial goals are declared at the start of the year, manually or electronically planning what will be spent or saved will commence healthy fiscal practices. Likewise, budgeting will help ensure that money is allocated properly. Pay Yourself First Before our paychecks have been dispersed, every dollar has been compartmentalized. As a result, the excitement of output (monetary reward) courtesy of input (hard work) fades. Nevertheless, once you have received your earnings, put away the amount you intend to save before you do anything else. Example: if you resolve to save 10% of expected earnings, accomplish this task before funds are allocated to other sources. Convert Google Calendar Into A Financial Calendar Google Calendar (arguably) has become the leading source in prioritizing one’s social and professional life. As a result, it would not be absurd to hold one’s financial life in the same esteem. Essentially, having a financial calendar will allow for payment due dates to be clearly outlined, as well as assisting in tracking pay dates and expected income. As dates and dollar amounts change, be sure to amend your calendar as needed. Follow The Money Tracking, although tedious, is necessary. Therefore, if you decide to manually track your funds, utilize paper and a pencil/pen to write down how much is spent daily, weekly, and monthly. Moreover, possessing a Money Diary will be a key aid in completing this task. In your diary, list what you have purchased, the cost, and reason(s) for purchase. The end goal is for your diary to be a teaching tool to further your financial education as a consumer. Cut Your Expenses There are expenses that we can all afford to cut, which include but are not limited to: $5 cups of coffee (Starbucks is a vice of mine), buying $12 lunches, and regularly eating out at restaurants. Solutions to these problems can be: bringing coffee from home in a thermos, brown-bagging (bringing food from home), and eating out at restaurants twice a month. Moreover, if you can decrease your food-related expenses to $10 a week, that’s a total average of $40 a month saved! Explore Better Banking Options Between black banks, commercial banks, and federal credit unions, banking options are plentiful. Exploring the multitude of banks available, as well as their in-person and online banking features, can help you manage your finances at an optimal rate. As such, be sure to thoroughly research your options, and possible fine print, before making the switch. When It Rains, It Pours, So Carry An Umbrella Having an emergency fund, or rainy day fund, at one’s disposal is not only a crucial component of financial planning, but a necessity as unforeseen events occur, unfortunately. As a result, utilizing proper financial planning tools forces you to carefully plan for future expenses. Keep Your Receipts While one can argue that keeping physical receipts for purchased items is a gift and curse (the gift is visually assessing what was bought, the curse is the clutter), I nonetheless applaud this financial hoarding. However, when it comes to keeping physical records of finances as a whole, the act is rarely employed. Therefore, to encourage healthy tracking habits, find the method that is right for you. Whether it is creating an Excel spreadsheet, or utilizing free financial apps, the opportunities to track spending are endless. If you lack access to electronic sources, explore using financial notebooks and workbooks. Retirement and 401(k)?...OK! Your financial plan for 2018 should include an outline for prospective investments as well as future retirement. In comprehending how your level of planning is linked to daily practices, let us look closely at employment. Although employment does not operate under a one size fits all model, most gainful employment should be accompanied by a highly-competitive salary, and benefits that complement living and thriving under capitalism. As such, these generous benefits allow for proper saving habits and proper allocation of funds into 401(k) plans. Remember, how much you want to save will depend on how much you can save. Accountability, Accountability, Accountability Building towards a prosperous financial future can be an overwhelming feat, especially when tackled alone. Thus, sharing your goals with a trusted friend or family member, who is also working toward the same financial future, can be cathartic. As such, having an “accountability partner” not only helps you stay on course, but provides a source of dual encouragement. In the moments where you, or your partner, feel tempted to splurge, talking through your decisions, together, can double your chances of success.
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