How will you begin your new year in reference to money this year? Will you repeat the same money cycle of living in the “moment,” shop till you drop, continue robbing Peter to pay Paul? Are you ready for the challenge, the challenge of controlling your finances and setting realistic financial goals? Well if you are truly ready, then let’s get started!
When it comes to money, you must be truly disciplined. You must be willing to set some ground rules in place. Just like there are rules in place at work and rules we set in place for our children, we should set a set of rules for ourselves as well. Here are the rules;
- Create a budget- By sitting down and evaluating your monthly after tax income and comparing it to your monthly expenses, seeing the financial snapshot will help you see areas that needs adjusting.
- Pay yourself- A part of your budget should be set aside for savings/retirement in addition to your monthly expenses. Read more here; http://nyahmag.com/?p=1245
- Check employer funds- Check with your employer to see if there are retirement funds that you can join and employer contributions, where employers will match or contribute a percentage towards your contribution.
- Eliminate unnecessary spending- Take a hard look at the things you do not need. Separate your needs from your wants. Eating out every night is not a necessity! Read more here; http://nyahmag.com/?p=31
- Shop for cheaper rates- Items such as food, health insurance, car insurance and home insurance are necessities and is needed, but you can do your homework and shop for cheaper rates which will free up additional income. (Use coupons and shoppers reward cards to save on food and gas.)
- Don’t neglect the important things- Keeping minor maintenance on your vehicles will avoid future headaches and more unexpected spending.
If you implement the methods mentioned above you will notice not only a difference in your income, but a change in your perception on how you view money. For more help with how to budget and budgeting tools for free visit;
Net wise assessment http://lp.nestwise.com/nestwise/lp4/?gclid=CKjZzdCtw7QCFUWnPAodwwMAVQ
Managing on a low income https://www.moneysmart.gov.au/managing-my-money/budgeting/managing-on-a-low-income
Image obtained from: csmonitor.com