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Well, my friends, the new year has come and made it’s mark ! What are your goals for the new year? Have you started making changes yet? If you have plans to change your life, whether that means you are making changes to your health or to your finances, the first step is to set some goals.
The second step is to get moving on those goals! You can do this, I know you can! I’ve got your back on these, let’s get to it.
If you have set your goals to putting yourself in a different financial position this year, congrats! If you need a little boost to get started, here are 5 tips for changing your financial life in the new year:
1. Create a budget
A budget can single handedly change your financial life forever. Before creating a budget, many people just go through life spending money without realize where their money is going. A budget will help you create a place for every dollar so that you know that your money is not being wasted unnecessarily. We did a post on how to budget right here if you need some tips.
2. Follow that budget
If you create it, you need to follow it. Taking the time to create a budget does you no good if you don’t follow through. Don’t worry, you will be glad that you did.
Having a handle on where your money is going each month, may seem overwhelming, it really isn’t. In all honestly, it is actually pretty comforting to go through the month and not have to stress about whether or not you will make it to your next paycheck. You will know ahead of time and knowledge is power.
3. Create a Side Hustle
Some people hate the phrase, “side hustle” but it is exactly that. Whether you get a second job or you start your own business or money-making venture, or hold a yard sale, these are side hustles to add more money to your bottom line.
That alone could help change your financial life tremendously. That cash allowance mentioned above. Give yourself a percentage of the profit first. Be fair though, even 10% is still an allowance increase. ALWAYS pay yourself first.
4. Cut the useless spending
We spend so much money on things we simply don’t need to spend money on. Daily lattes, cable, fast food, that one little item on clearance you didn’t even ‘need’ until you spotted it, etc. The list can go on and on.
If you can get your brain trained to avoid these temptations, your bank account will love you for it.
5. Start saving
Even if it is just $10 per paycheck, you need to start saving. The smaller amounts may seem insignificant, but once your savings starts to grow, you will begin to feel a sense of contentment that you didn’t have before and you will love it.
Find a way to save that gives you a smile, a good feeling. I enjoy my change jar filling up and stashing dollar bills around the house until I feel like making the boring trip to the bank.