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In the New Year, it’s advisable to plan ahead and maintain good financial credit. Experiment with these tips for a successful 2019
Calculate expenses
You should find out exactly how much you spend each month. Do this by consulting your bank statements, receipts and financial files. Because some expenses are intermittent, you’ll get the most accurate financial picture if you calculate an average for six months to a year. Add up everything you spent for the last six to 12 months and then divide by the number of months, which will give you your average monthly expenses.
Remember that being thorough when you add up expenses is important in creating a realistic budget. When calculating your expenses, also factor in unexpected bills, such as unplanned car repairs.
Determine your income
Once you’ve figured out how much money you need to stay afloat financially each month, it’s time to determine your actual income. Besides your regular salary, get an accurate picture by adding any extra funds that may come your way throughout the year, such as cash gifts and sale of items.
Record spending and track progress
The best way to stay on top of your budget is to record all of your expenses and income. Having to input expenses will cause you to think twice before splurging, and it’s especially satisfying and motivating to record when you’ve met a savings goal.
Set a goal
It is easier to maintain good financial credit when there is a purpose to it. Are you saving money to go back to school? Do you want a better apartment, or your own home? Visualise what you want and reach towards it. Use pictures to reinforce what you’re trying to accomplish. A cap and gown taped to the door can be a reminder every time you step outside that every penny you spend could have a better purpose.
Live within your means
Review your expenses and make sure they’re in line with what you make. If you’re spending more than you make, reassess what you are spending. Spending less than what you make is the definition of ‘living within your means’.
Get an app to help you with your budget
Luckily, there are apps to help you track your spending and stay on track with your budget. Such apps allow you to add budgets in different categories such as food expenses, rent and medical expenses and the likes. The apps also warn you when you exceed your budget.
Be realistic
Don’t expect to be saving large amounts of money right away. Start small and build up to more.
Carry and use cash
Not using your debit cards will help you stick to your budget. According to www.medium.com, you’ll be more intentional about what you purchase and how much you want it or not. Using cash for your weekly errands and expenses will make you consider if you really need that new shirt or if you would rather add the money to your savings account.
Cut costs
This is a vital part of saving money. Ditch the restaurants and stick to home-cooked meals. That way, you’ll be saving more than you can imagine. Before you buy a new outfit, consider if it is of utmost importance to own the piece or if you’re only buying it because it looks good or is trendy. Don’t purchase on impulse and if you are going window-shopping, drop your debit cards and cash at home, so you don’t get tempted to spend money.
