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Five Quick Money Tips for the New Year

Five Quick Money Tips for the New Year

Depending on your point of view, a glance at the calendar these days can elicit one of two responses: relief that 2016 is finally coming to an end, or panic that you have yet to set resolutions for 2017. While goals related to weight loss and health tend to be most popular each year, the hope to get a better hold on finances usually isn’t far behind. If you’re one of the many Americans looking to change their money-wasting ways in the coming year, here are a few quick tips for you.

Have a budget and stick to it.

Perhaps the single biggest personal finance mistake that many of us make is spending without tracking our purchases. Although just striving to keep your bank account in the black may work for a little while, it doesn’t leave room for error, not to mention emergency. That’s why it’s so important to take the time to create a real budget for yourself.

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Luckily, this process has now been made less painful as several apps (e.g. Mint, YNAB, and GoodBudget) allow you to set spending limits and will automatically categorize your purchases for you. Of course, you can always keep a spreadsheet of your own as well or use one as a backup. Lastly, if your addiction to plastic is really getting the best of you, try using the old school envelope method where you put cash (yes, cash) into folders labeled with each category of spending. Once your cash is gone, that’s it. You’ll quickly learn what areas you need to work on.

Up your 401(k) contribution.

With another year over, you are now another year older. Sorry to bum you out but it’s important to consider. Even though retirement might seem like an eternity from now, the truth is that you still need to be saving for it. One of the best ways to do that is by contributing to a 401(k).

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What’s great about 401(k)s is that in many cases your employer will match a certain percentage of the contributions you make and might also offer profit sharing. If you’re not taking advantage of this “free money,” you really should be. In fact, now is a great time to change your withholdings as open enrollment traditionally takes place at the beginning of each year.

Save more on your purchases by planning ahead and getting creative.

Impulse buying can lead not only to some ill-advised purchases but could also cause you to spend more than you need to. There are several ways to save money on the things you buy, but most of them involve planning.

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As someone who visits the mall on a weekly basis, one my favorite ways to save is to find an item I want, set a target price I’d be willing to pay for it, and then wait until it is marked down enough for me to buy. While that may be time-consuming, running a Google search for a coupon code before buying something online is super-fast and oftentimes very effective in helping you reach that important target price. Lastly, don’t forget to be creative and use loyalty offers, credit card rewards, and regular old coupons to your advantage— even all at once!

Start an emergency fund.

Speaking of planning, if 2016 taught us anything, it’s that the unexpected can happen. That’s why having an emergency fund is paramount to ensuring your financial security. Furthermore, in addition to having enough saved up to cover three to six months of essential bills should you lose your job, you might also want to consider having a separate fund for things like car repairs. With these savings in place, you’ll be able to make it through tough financial times without resorting to credit cards. If the worst does happen, you’ll be very thankful you were prepared.

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Consider a side hustle.

Obviously saving money is a big part of personal finance, but so is making money. Luckily, thanks to the Internet, you can now monetize more possessions, talents, goods, and services than ever before. As a result, maybe it’s time you considered pursuing a side hustle of your own. Whether that means blogging about your passions, using some of your free time to drive people around town, selling items you create yourself, or renting/selling items you don’t need, you may be surprised by what you can do and what you could earn. Why not give it a shot?

Happy New Year, everyone — here’s to a great 2017!

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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