It’s a brand new year and a brand new opportunity to get your finances too! The new year is always a great time to give yourself a bit of time to reflect on the highs and lows of the previous years – what went wrong, what was great and what you can do even better this year.
We may not like to think of it, but money is one of the most important ways you can improve your lifestyle. This doesn’t necessarily mean getting rich quick or never spending ever again – it’s more about learning to live within your means, reducing your debt and building your savings for better financial security. One way of reducing your interest payments when you have high-interest loans, it to consolidate your debt.
Spending Habits To Get On Top of Your Finances
The first thing you should always look at is your spending pattern. In our world of wonders, it can be all too easy to succumb to the latest models of everything and when we work so hard, the odd treat here and there can quickly multiply. While treating yourself should never be scrapped completely, looking at what you spent and where you spent it over the last year might throw up some surprises. Budget calculators can help you track your money.
Did you need to spend all that on so much make-up? Can your grocery bill really be that high? Is your closet full of new clothes that you’ve barely worn?
If you are finding that your income only just matches your outgoings, or that you are starting to rack up debt with your habits, knowing what you have spent will give you a chance to see where cuts can be made.
Planning Your Debt Repayments to get on top of you finances
There is no shame in having debt and most people will be affected by it at some point in their lives. But, whatever the reason for your debt, you should make sure that you have a plan for making sensible repayments to get rid of your debt as quickly as possible. This will make your life a lot easier, but it will also help to improve your credit score.
There are lots of methods you could use from extreme ‘no spend’ weeks to save rapidly to more relaxed repayment plans. It is worth looking at debtconsolidation.co to see whether consolidated multiple debts into one would be a smarter plan.
Set Your Financial Goals and Your Finances
Once you have spending and your debt repayment plan under wraps, it’s time to set some financial goals. If you are struggling with your debts, you might set a goal to repay them, or at least a good portion of them this year. Another good financial goal is to start building up savings and set a target for that. You might also want to reconsider your spending and set limits on the amount you can spend on non-essentials each month to ensure that you live within your means.
Finances can feel like a minefield, but once you are informed, it’s really just about balancing the sheet to get on top of your finances. And when you come to do this exercise again, you will already have all the information you need at your fingertips, ready for the next plan.