Many of us make New Year’s resolutions that focus on money. We want to save. We want to clear debts, or we just want to have more money at the end of next year than we do now. Most of these resolutions fail or get left behind with winter.
We often fail these, and other resolutions because we don’t have a plan or any kind of idea of how we are going to manage them. In fact, a study has shown that 4 in 10 adults feel as though their finances are out of control. So, instead of making wild, baseless resolutions which set you up to fail, why not focus on taking control of your finances over the next 12 months?
Understand Your Situation
The first thing that any of us needs to do when it comes to taking control of our finances is learning more about our own situation. Your financial situation is unique to you. None of us are in exactly the same boat, and there’s no one guide that you can read that will help you to fix all of your problems. It all depends on where you are right now.
So, stop avoiding bank statements or bills. Check your balances, learn about the interest rates on what you owe and how much your debts are costing you. Look at what you spend and save every month, and work out how long it would take you to repay debts or save what you need to, at your current rates of saving or repayment. It’s also worth looking at your credit score, which can have an effect on your finances going forward.
Learn More About Your Options
Once you understand your finances, you are better equipped to learn more about your options. Which again are unique to your situation. We don’t all have the same options when it comes to borrowing and investing. If you want to make some changes to your financial situation, you need to learn more about these options. Read about investments and savings accounts, learn about cryptocurrency and blockchain fork. Make sure you have a firm understanding before making any financial commitments.
Set Up a Budget
Budgeting is the easiest way to take control of your finances, to understand them and to spot any places that you could be making changes and improvements. Set up a simple budgeting spreadsheet and start taking the time to fill it in. When you start making cuts, make sure you are realistic and that you don’t commit to anything that you can’t afford or won’t be able to stick to.
Set Yourself Goals
Most of us want to save more money, and this is often the aim of deciding to take a greater control of our finances. With this in mind, setting goals is a great idea. Set yourself a realistic monthly target, using your budget and new found knowledge of your finances for help.
A crucial element of taking control of your finances is understanding them. With an understanding of your situation and your options you are able to start making informed decisions, and you can find that things quickly begin to improve.