It’s a new year, a new decade – and if you’re like most people, you probably have some financial goals you want to accomplish this year.
So, what do you want to accomplish?
Finally stop living paycheck-to-paycheck, like 80% of Americans…
Get that new car, or finally buy a house…
Really contribute to your retirement fund…
Make an impactful donation to your favorite charity…
Help a family member in need…
Increase your income…
It’s not enough to just want those things. You have to create an action plan that will help you achieve them.
But…where do you even start? 🤔
Here are the 4 simple things that drastically changed our financial situation for the better:
- Set + follow a monthly budget 💰
Yes, the following part is imperative! Understand every single bill you pay each month, and figure out an average for variable expenses like groceries, gas, shopping, etc. Ideally, you should find an average from the last 6 months, but at the very least use the last 3 months.
How to do this: Print out your bank statements from the last 3-6 months. First, go through and highlight all your bills in one color. Highlight your other essentials in another color (like gas, groceries), and finally highlight your extra spending in another color (shopping, eating out, subscriptions, memberships, etc.).
This allows you to get your averages for variable expenses, find places where you may be able to cut certain spending, and ensure that you don’t have any expenses that shouldn’t be there (like that time we forgot to cancel our old gym membership months after we moved 😬).
We then set limits for shopping and groceries, because it can be easy to go crazy with those!
Having a budget helps you manage your money better, and ensure you’re putting money where it counts (like savings, rather than mindless spending).
- Weekly review 💵
My bank app includes a dashboard that breaks down all my transactions into categories like Shopping, Rent/Mortgage, Restaurants, Utilities, Transportation, etc.
If your bank doesn’t offer this, you can use an app like Mint, which connects to your accounts (I used this for a while before my bank made the new updates to their app).
Every Sunday night, we pull a list of our transactions and review how we’re doing against our budget to make sure we stay on track.
- Strategically pay off debt 💳
I used to pay bare minimum on EVERYTHING, until I realized I’d be paying off debt for the rest of my life!
Stop paying 2x, 5x, 10x more for purchases in interest. Create a plan to strategically and quickly pay off debt so you can save more in the long run, and be debt free.
- Diversify your income 💰
I worked for a company that shut down overnight. I’ve seen (and luckily survived) numerous layoffs.
No single job is secure and safe forever, as much as we’d like to believe it. Finding ways to create additional income streams not only increases your overall income, but offers a bit more security.
There are many ways you can create new streams of income, including freelancing, gig work, network marketing, creating a small business…
Whatever path you choose, do your research to ensure it’s the right fit for you and will be profitable in the long run.
Are you taking care of your financial health? Download the FREE guide to get started now: 4 Easy Steps To Take Control of Your Financial Health
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