Did your finances get messed up in 2015? What are your financial resolutions for 2016? Hopefully your financial goal will be “spend less, save more” as you create new opportunities this upcoming year!
Here are 12 financial tips to get your money back on track:
1. Focus on budgeting
Are you planning to get hold over your finances? If yes, then your primary focus should be on your budget. Budgeting is the first building block of any monetary plan. In order to create a perfect budget, you should first note your monthly income and expenses. This will give you a detailed idea of your financial whereabouts.
2. Pay off your debts first
If you want to make your finances smile in 2016, then pay off your debts first. Don’t let them ruin your New Year’s enjoyment. Make time to prioritize your debts. Find out, which are your priority debts and non-priority debts, and work accordingly to pay them off. If you are facing difficulty in prioritizing your debts then seek help from a financial advisor.
3. Create an emergency fund
Typically, emergencies don’t let you know in advance they are coming. Has your credit card limit got exhausted in paying the medical bills? Or, what will you do if you suddenly lose your job? One of the basic solutions is to create an emergency fund for yourself. So, begin saving to be prepared for any unexpected situation.
4. Put money aside for your retirement
If you save for your retirement now, then you will have money when you start preparing for a pending retirement. A good rule of thumb is to invest 10% of your income into retirement accounts. Also, you can invest in your 401(k)/403(b) account.
5. Be aware of identity theft
Identity thieves are smart enough to steal not just your identity, but also your money. So, the next time you get an unknown email with a hyperlink, think twice before you click on it because it can be a trap!
6. Take advantage of your workplace benefits
If you are in a job that provides you with various employee benefits, be sure to get all the details. If they provide you with retirement accounts, flexible spending accounts, financial literacy programs, wellness support, and so on, then make sure you should take full advantage of them.
7. Be financially educated
Financial literacy is a key factor when it comes to money management. Read various financial journals and articles to educate yourself with what is going on in the financial world.
8. Handle your household expenses
Money management gets a bit difficult with the day-to-day household expenses. Are you facing difficulty in managing your household expenses? Yes? Then, you can use the HomeBudget app and the HelloWallet emergency savings calculator to better manage your money.
9. Review your insurance policies
If you are the only earning member of your family, then don’t forget to check out your insurance policies once a year. Review your insurance policy to get a good idea of your coverage, and make sure you are getting enough of it. Is your company providing any insurance coverage? If so, then make it a point to avail that.
10. Know your financial goals
Where do you want to see yourself financially in the next few years? Do you want to buy a house or a car? Or, do you have other major financial plans? Ask these questions to yourself first, and find out where you stand financially to know how to fulfill your dreams by setting your financial goals accordingly.
11. Learn ways to earn supplemental income
One of the key points in money management is to learn the ways to multiply your finances. If you are good at trying your hands in the kitchen, then you can provide catering services to earn some extra dollars. You can also search the web to get ideas regarding ways to earn more money.
12. Learn to negotiate
You should have the guts to ask for better rates on everything you purchase. Learn how to negotiate and make your finances happy. Always remember, “a penny saved is a penny earned”.
If you haven’t made any financial resolutions for 2016, then go back and check out the above tips to help you manage your finances better.
If you have a financial plan for 2016, what are the things you are focusing on?