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

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.

    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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    Published on November 20, 2018

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

    Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

    In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

    Why Your Past Prevents You from Saving Money

    Are you constantly thinking about your financial mistakes?

    If so, these thoughts are holding you back from saving.

    I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

    It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

    For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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    How to Effortlessly Track Your Spending

    Stop manually tracking your spending.

    Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

    When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

    Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

    The Truth on Why You Keep Failing

    Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

    Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

    Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

    If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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    Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

    Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

    1. Save more than 50% of your available money (after expenses)
    2. Only buy nice things after saving
    3. Automate your savings with automatic bank transfers

    These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

    How to Foolproof Yourself out of Debt

    Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

    So how can you separate yourself from the 60%?

    By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

    This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

    For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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    Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

    A Proven Formula to Skyrocket Your Savings

    Having proven systems in place to help you save more is important, but they’re not the best way to save money.

    You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

    What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

    Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

    Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

    During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

    Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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    Transform Yourself into a Saving Money Machine

    Saving money isn’t complicated but it’s one of the hardest things you’ll do.

    By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

    The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

    Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

    Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

    What are you waiting for? Go and start saving money, the sky is your limit.

    Featured photo credit: rawpixel via unsplash.com

    Reference

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