It’s a new year, and there’s something about the beginning of a fresh, new year that makes you excited about setting goals. It’s like every 12 months, you are handed an opportunity to change the way you’re doing things in a drastic way, if need be, and no one in your life will flinch or hesitate. It’s all in the name of self improvement and new years goals. One of the goals we see circulating most often, is to ensure a better sense of financial security.
Make savings a priority
A lot of us think of our savings as optional; we will put a few dollars in when we feel like we can afford to, but we are quick to transfer it back to our checking account if a “need” arises. Your savings account should be a sacred place. And this year, you should make it a priority. Transfer a percentage of every paycheck into your savings account, and then leave it there. Don’t touch it. Unless an expense comes up that warrants use, such as a medical emergency, don’t dip into your savings account.
Pay just a little extra off your debts each month
Instead of making minimum payments on all of your debts, pick one to pay a little bit extra every month. The theory behind this is that, since you’ll pay off this small debt faster, you can use that extra money + the money you were using to pay off that debt, to make larger payments on another debt. It will be a small sacrifice in the beginning, but will pay off quicker than you’ll think and you’ll be grateful you did it.
Eat out less frequently
One of the biggest culprits of unnecessary spending, is eating out when you have a perfectly functioning kitchen with fresh groceries in the fridge. You don’t have to quit cold turkey, but just cut out one meal a week, and cook that one at home instead. You can slowly work your way to only eating out for special occasions and when the situation necessitates it.
Get rid of one unnecessary expense
Do you pay for a subscription you rarely use? Almost everyone has one expense that really isn’t necessary, and isn’t worth the money. Whether that’s a radio subscription, a weekly ladies night, or something else. FInd a way to compromise so you can save money, and cut out that unnecessary expense.