The New Year is almost upon us, and as we go through the often expensive holiday season, we might just find ourselves experiencing a “financial hangover” come January. If you want to make up for those hefty holiday purchases by starting the New Year off on the right foot, here are some quick money saving tips for 2018.
- Make a Budget, and Stick to it! This sounds simple enough, but despite this many people fail to compile a budget for the New Year, or if they do they fail to stick to it. Sit down and compile a clear budget for 2018. You don’t have to do everything in one day; in fact, it is recommended that you take your time to make sure that everything is workable.
- Adapt to Changes! As time goes on and the year progresses, you are bound to face some changes to your financial situation. Whenever a major change occurs – an unexpected expense, a sudden trip, or anything along those lines – be sure to go back to your budget and adjust it. Life is unpredictable and our ability to adapt is crucial, so don’t be afraid of change but be sure to account for it in your budget.
- Save for a Rainy Day! Speaking of changes and unforeseen expenses, the best way to deal with such pesky realities is to always expect the unexpected – and to plan for it ahead of time. In case something unexpected happens, such as your car breaking down or your house suffering damage from harsh winter conditions, be sure to have a slush fund ready to go. It is advised to have a sum equivalent to all of your expenses for three months at your disposal, so if you don’t have that kind of money saved up my advice is to start saving now.
- Cut Out the Cards! Whether credit or debit, relying on bank cards for your daily purchases will likely lead to spending more money than you planned. Unless you absolutely need to make a larger purchase leave your cards at home and get in the habit of bringing only the exact amount of cash that you are prepared to spend. This will eliminate the type of impulse purchases that you will regret later.
- Invest in Yourself! Financial experts suggest that you should take about 6 percent of your monthly income and invest it. Even more than that would be great, but 6 percent every month adds up quickly, and as the years go by and you get closer to retirement, you will be glad that on top of all your other expenses you were also investing in yourself!
I hope that these 5 tips will help you start 2018 off on the right foot! For more financial and real estate tips, feel free to call Barbara Grumme at 905-356-9100.