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3 Things You Can Do Now to Improve Your Finances in the New Year

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3 Things You Can Do Now to Improve Your Finances in the New Year


    Who wants to end 2012 even better financially? You need more than just a “that sounds like a good idea” attitude to make that happen.

    So let’s not waste anymore time, shall we?

    Here are three actions you can take now — before we even hit 2012 — to end next year with a better balance than this year.

    1. Know Your End Game

    What kind of financial standing do you want to end up with in December 2012? Take some time now to plan your financial goals.

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    I recommend figuring out how things went this year. What were you happy about? What could have gone better financially? Were there any bad choices made? Be completely honest with yourself.

    Now think, if you were looking back on 2012 and reveling in how amazing it was for you financially, what would it look like? No, this isn’t “pie in the sky” or “winning the lottery” type of imagining. Figure out logically what you should shoot for.

    If you make your goal too big your brain will start to stress over not yet achieving it.

    Just thinking about what you want isn’t enough though. Try to set your goal in stone.

    After interviewing 50 millionaires, I’ve learned that they do a lot after the goal is set. They use vision boards, goals written on whiteboards, or put goals on post-it notes on their laptops. Then they break down the goal to figure out what they need to do to achieve it.

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    “When I have a goal I’ve written it down and then I know I need to make this happen to achieve the goal. What my action steps are for today, tomorrow, this week, next week, for this whole month, etc.” – Vonda White, CEO of Collegiate Risk Management

    Millionaires don’t do anything crazy or different than the typical advice you have heard about setting goals. Their success lies in that they actually take action to write them down, see them every day and commit to working on them each week.

    Action: Create your End Game in visual form that you will see it every day. Break it down into weekly goals and commit to them.

    2. Get Accountability

    Finances are still a taboo subject. It may mean fighting over money with your significant other, or being hush-hush on how much money you make in the workplace. We tend to complain about money in public. It seems socially acceptable to talk about being broke, or getting good deals on stuff but not about giving advice and helping each other out.

    If you want to win in 2012 with money you can’t be silent. I know this from experience. I was $70,000 in debt and didn’t even realize it. Only when I was able to start talking about it — and doing something about it — did things change. I paid off all $70,000 in 16 months.

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    So find someone that you can talk to and keep you accountable. Find a friend that wants to work on their finances in 2012 too. If you are married, your first choice should be your husband or wife so you can create a strong bond around your finances (but if money is a sore subject though you may need to find a friend you trust instead).

    Set up a weekly or bi-weekly chat with each other. Talk about great choices you’ve made, and what you want to do better in the weeks to come. You can also help each other brainstorm about ways to hit your goals. Commit to that meeting. It will give your finances the attention they need to achieve your goal.

    Action: Email your trusted friend or significant other asking them to help you be accountable in 2012.

    3. Be Thankful

    We all want things to improve next year. I know from working with many clients, we tend to focus on what we don’t want, or how much better things will be when we achieve our goals in the future.

    It’s not about that at all.

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    It’s about appreciating your financial situation now. Even if it’s not what you want. Most likely you have a computer and are reading this on your Internet connection, or maybe even at work. That means you have much more than most people on this planet.

    Make sure your 2012 includes ways to show your gratitude for all that you have. We have so much to be thankful for and sometimes it’s hard to remember that.

    Create a thankful routine. A thankful routine is just something you decide to do when you are feeling down about your money situation, or you aren’t making as much progress as you want to. It might involve writing down a few things you are thankful for, giving a small amount of money or time to someone who needs it more, or even calling family or a friend to remind them how much you love them.

    Money isn’t everything.

    Action: Create your thankful routine. Just pick one thing you want to do when you attitude about your fiances shift negatively.

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    Enjoy your 2012. What are your plans to make it the best year yet?

    (Photo credit: Calculator and Money via Shutterstock)

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    Last Updated on July 20, 2021

    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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    Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

    Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

    Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

    Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

    In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

    Break Free of Your Finances

    Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

    When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

    Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

    Though it seems hard to believe, it is really very simple to get financial freedom.

    To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

    While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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    Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

    1. Stop Unnecessary Spending

    We often spend money inwardly, instead of objectively.

    For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

    To stop this habitual spending, log down all your spending over the course of a month.

    Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

    This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

    2. Plan a Monthly Budget

    This is a great opportunity to get serious.

    Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

    Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

    3. Cut-up Credit Cards

    Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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    If not, you may want to consider ridding your life of the burden that credit cards bring.

    Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

    Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

    4. Increase Savings

    There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

    It’s good practice to save up to 15% of your income.

    Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

    Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

    5. Invest Wisely

    Consider investing in funds.

    Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

    To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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    Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

    6. Invest in Gold

    There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

    You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

    Another way to invest in gold is through ETFs (Exchange Traded Funds).

    These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

    With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

    7. Stash Emergency Funds

    Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

    If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

    Make it hard to get your cash.

    Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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    8. Find Fabulous Mentors

    Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

    If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

    There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

    9. Be Extra Patient

    Patience is the key of financial success.

    Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

    So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

    Financial Freedom for All

    Anyone can achieve financial freedom, regardless of their financial circumstance.

    Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

    Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

    Featured photo credit: rawpixel via unsplash.com

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    Reference

    [1] Hartford Gold Group: IRA Retirement Accounts

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