Like many people, you're probably hoping the coming year is filled with success and prosperity — or maybe you'll simply be happy to have a year with less debt. Money matters and financial management can be difficult issues to tackle, especially when the number crunching just makes you feel discouraged. Instead of hoping that Publisher's Clearing House will arrive at your door (finally!), how about meeting your hopes for a great fiscal new year halfway by adopting a new and improved money management method?
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Finally Create a Sound Budget You Can Stick With
Budgets work — but only if you follow them. If you've made countless budget worksheets only to ignore their perimeters, set out to find a method that works for you. Is it a computer program? A planner? Whatever you choose, use it to craft a budget you feel good about — one that has your income being put to wise use. Knowing your budget will help you when unexpected spending pops up. In some cases a personal installment loan, such as you can find at Great Plains Lending installment loans online, can help provide some padding.
Face the Needs-and-Wants Music
This part may not be fun, but it will be the difference between you and yet another credit card bill. Needs are those things you must spend your money on — rent, car payments, gasoline, food, bills, healthcare — and wants are those seductive items that can undermine your financial goals and put you further into debt; designer purses? A new car because the neighbors got one? You don't have to kiss nice things good-bye, but you do need to understand the cons of a $200 handbag when your savings account is empty.
Just Say No to More Debt
Debt can also be a millstone that drags you down and prevents your fiscal goals from flourishing. Education loans and mortgages are legitimate forms of debt (as long as you can afford the school or house you choose) but monthly payments on jewelry, handbags, and cars way out of your price range are wants (see above) that will prevent you from achieving greater financial freedom. Put a plan in place to pay off existing credit card debt more quickly, see if you can negotiate a better interest rate on your current mortgage, and tuck those credit cards away for, well, maybe a monsoon.
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Save for a Rainy Day
Saving is hugely underrated, but when you see your account go from red to black, you're on your way to achieving your fiscal goals. By making little cuts here and there (such as bringing lunch to work) or large scale cuts (move in with mom and dad for six months), you're filling up your reserves that can be used for sudden needs, spending goals, or even small investments.
This really can be the year you do it; make the goal to be a pro with your money and you'll reap the rewards you never thought possible.
