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10 Financial Moves You Need To Make This Year

10 Financial Moves You Need To Make This Year

Whatever past mistakes you’ve made, 2014 is the year to change your habits. I’ve noticed I’m an impulse spender who always looks forward to that next big purchase. No matter how much money I make, it never feels like enough, as I’m always filling previous voids. In order to break that habit, I sought the advice of several financial analysts and life coaches. Each helped me identify trends in my personal life that affect my finances. To combat it, we’ve come up with a list of financial moves I need to make this year, and you should too.

Assess Yourself

dollars Lifehack Versability

    Smurfette wept at she stared at the pile of bills she earned at the strip club…

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    Take an objective look at your finances. Are you making enough to cover your spending while paying your past financial obligations and preparing for the future? If you’re spending based on future income, there’s an issue. You need to look at the numbers involved in your personal finance at least once a month to ensure you’re staying abreast of your current financial situation.

    T.J. Tillman, a founding partner at Empire Wealth Management says, “My recommendation is to have a hierarchical set of financial priorities and not stray from it.  The order would be (from bottom to top) paying for basic monthly expenses like food, shelter, etc., money set aside for emergency savings, money set aside for retirement, and then discretionary income to save up for major purchases. By following these guidelines, it’s possible to live a life with significantly less stress and still work towards those material things that are nice but not necessary.”

    Pay off Your Credit Cards

    Your highest interest rates are coming from your credit cards–and that’s just the start of where they get bad. Having revolving credit is only good for your credit if you have an abundance of available credit (money you could spend, but haven’t). Even this is only true of true credit cards; pre-paid credit cards don’t even report to your credit agency (you’re paying a fee to use your own money).

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    Paying off credit cards is a vital step in treading above financial waters. Pay off cards with the highest interest rates first, and know that if you took out any cash advances, that balance is paid off last (earning the banks the highest interest rate for as long as possible).

    Strengthen Your Reserves

    Every penny you save counts. Stop looking at bonuses as “free money.” In fact, stop looking at any money as free; you have to work for every cent. Stop discrediting the effort you put into your own personal blood, sweat, and tears, and instead start paying the most important bill of your life: your monthly payment to your personal savings account. You want to have at the ability to pay at least 3-6 months worth of bills in case an emergency comes up. You’re never 100% in control of your own income, and even if you were, life happens. Be prepared for an empty tanks with a reserve can just in case.

    Settle Your Debts

    It’s never fun owing anyone; I’ve never heard someone say, “I’m so happy I owe money to (insert anyone’s name).” Settling debts will strengthen your reputation and lift a mental burden from your shoulders. Instead of thinking about who you owe what to, you can concentrate on what’s important in life. “Karma is real, baby,” explains Life Coach Melanie Cobb. “Money can’t flow to you if your incoming channel is clogged with old resentments, guilt, or small stories.” Drop the guilt and clear those burdens off your plate.

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    Tired Until You’re Retired

    Unless you’re Benjamin Button, one day you’re going to get old. If you don’t start saving now, you’ll be one of those old people who’s still working. It’s easy to think you’ll never be that way, but it’s as inevitable as death if you don’t do something to prepare now. What if the world ended today? What if aliens invaded and are going to destroy the earth. You’re not on the president’s call list–he doesn’t even know you exist. So what will you do? If you don’t have a plan, you’re not a survivor of the zombie apocalypse; you’re a zombie.

    Habits Are Made to Be Broken

    Bad spending habits are the root of most people’s financial problems. Stores know this, and that’s why there are impulse items strategically placed throughout the store. In fact, nearly everyone is counting on you to spend money, and the only person you can count on to be responsible with your personal finances is yourself. Break free of bad spending habits by practicing discipline and focusing on your financial goals, rather than relieving your temporary cravings. Also a word of advice–eat before you go grocery shopping to keep from overspending.

    Review Your Permanent Record

    You need to check your credit report today; in fact it’s a good idea to check it at least once a month. Remember how you had a permanent record in school? Teachers would always threaten to list misdeeds on your permanent record. You couldn’t see your permanent record then, but you can check your credit report to ensure you truly are responsible for the financial decisions you’re being credited for. Now you know, and knowing is half the battle.

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    Be Open About Your Finances

    If you keep your finances a dirty secret, it’ll eventually come out the closet to bite you in the ass. You need to be honest with people–you don’t have to tell them how much money you make or have, but you don’t need to be ashamed to tell people you’re not willing to pay to go out because you’re currently saving. They may ask questions, but you can politely remind them that you’d rather not discuss finances whenever it gets too personal. You don’t need to broadcast your checking account balance; just don’t act like you have ends you don’t.

    Seek Professional Help

    There’s no shame in asking for help. Even Michael Jordan needed coaching. People like T.J. Tillman and Melanie Cobb represent an entire industry dedicated to coaching and motivating people through the tough financial times. It’s not necessary to take on the burden of all your debt and finances yourself. Cash rules everything around me, so it’s a pretty big deal that’s worth spending time discussing with a qualified professional.

    Be Realistic

    We all want to be billionaires and spend money on all the things Bruno Mars sings about, but we’re not all CEOs, so we’re not likely to have that chance. Be honest with yourself; you can lie to everyone else, but always be honest with yourself about where you actually are. You can’t find your destination if you don’t even know where you’re at. Realistically assess your resources and options, and stick to goals you can actually stick to; it may take a little suffering, but, with resourcefulness and perseverance, you can make the right financial moves this year to bring success to any endeavor.

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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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