New Beginnings for You and Your Money

The holidays hit many people hard when it comes to controlling spending and sticking to a budget. It’s easy to get caught up in the spirit of the season and overspend on gifts, food and clothing, leaving you a big hole in your wallet in January.

 If this sounds like you or someone you know, don’t panic, now is the time to make changes to your money management habits so you won’t face the same problems next. Year. By following a few easy steps, you can put yourself in control of your money instead of letting it control you.

Take the time to plan.

Sit down and think about what you want in the future. If you don’t know where you want to go, you will never get there.

Write down specific goal.

Look at your goals from time to time and remind yourself of them each time you reach into your wallet to buy something. Ask yourself “will buying this help me reach my goals?” If the item is not something you absolutely need and it doesn’t help you reach your goal, don’t buy it. Take the money and put it in a savings account, or even a jar or piggy bank. Over time those small savings will add up to big dollars.

Know where your money goes each month.

What happened to the $20 you had in your pocket on Monday? Does it seem like the money simply “flew out the window”? Many people live from paycheck to paycheck and feel that there is absolutely nowhere for them to cut back and save. If this is the case with you and your family, it is absolutely critical that you know where every dollar is going.

Take the time to track what you spend and you’ll be surprised at the number of things you buy that you don’t need, that are bad for your health or that don’t contribute to your goals. Make sure you track everything, not jus the large payments like rent or utilities. It’s the little things like guy, soda, coffee, and snacks that can add up to big dollars over time.

After tracking your purchases for a month you may discover that you are spending a dollar every day on sodas or snacks. If you saved that dollar each day, you would have $365 at the end of the year and $1,826 after five years. If you had put the money in a savings account that earned interest, it would have grown even a little more.

Take action.

Once you’ve determined what you want for your future and have a good idea of where your money is going, it is time to put your plan into action.

Remember the changes you make don’t have to be huge. Just keep your goals in mind and you will see the rewards.