While it is hard to believe, a new year is finally here. It’s a New Year, with a clean slate and updated goals. Have you made any resolutions? If you’re looking for ways to work on your finances in the New Year, we have a few suggestions.
Set a budget
Get the year off to a good start by preparing a budget for the year. To keep budgeting from being too overwhelming, try to plan it month by month. How much can you spend each month? Map out the costs of bills, groceries, eating out, entertainment and other costs. You might be surprised at how much money is spent each month on these types of expenses. Once you figure out a budget plan that works for you, stick with it, and don’t give up if you find it tricky at first.
Map out your big expenses
Once you have your budget in place, create an additional plan for all of your big expenses1 for the year. Do you have a summer vacation planned already? Make a note of it. Plan birthdays and holidays that you need to shop for. Make it a goal to be aware of big expenses and prepare for them early on. That way you can put a little extra aside to pay for them and prevent them from them creeping up on you later on.
Cut out excess spending
Stopping for a small coffee every day on the way to work might not seem like a big deal, but small expenses can add up. You might not even realize it! A good way to save some extra cash is to cut back on excess spending.2 Whether it’s online shopping or impulsive grabs at the grocery store, try to avoid buying things you don’t necessarily need.
Set a savings goal
Create a resolution that you can work towards all year long. How much money do you want to save3 by the end of the year? Write it down and work towards it. Put the money you save by cutting unnecessary spending towards your goal. You could open a savings account to watch your savings grow. It’s okay if you find saving to be tough! Don’t get discouraged, because it’ll feel good when you get close to or meet your goal.
The views expressed by the articles and sites linked in this post do not necessarily reflect the opinions and policies of Cash Central or Community Choice Financial® .
1First State Community Bank. (2021, Dec 27). Retrieved from: https://www.fscb.com/blog/budgeting-for-large-expenses-a-step-by-step-guide
2Ramsey Solutions. (2023, Apr 27). Retrieved from: https://www.ramseysolutions.com/saving/how-to-cut-costs
3Bennett, Karen. (2023, Mar 17). Retrieved from: https://www.bankrate.com/banking/savings/how-to-set-savings-goals/