Getting Your Finances Together For The New Year
The new year is beckoning, with all the promise of a new decade in sight. It’s important to note just how much potential resides there, but of course, none of this will be realized if you aren’t prepared or willing to face it. Preparation is the key here, because starting with the best footing possible is essential, no matter which direction you hope to move.
Getting your finances together before the new year can be a great idea. Note that this is not the same as clearing your debt completely or being in a very strong credit position. After all, the cost of the festive period can put a dent in the spending habits of most people. That being said, there’s no reason as to why the moment the festivities are over, you can’t take an inventory of your income and outgoings, and to care for other residual matters of financial health that orbit around the surface.
In this post, we hope to explore a few examples of this to start you on your journey.
Address Financial Pitfalls
Almost none of us can make financial progress without addressing the lead balloons that may be holding us down. This might come in the form of overdue credit, bad budgeting, owed money to relatives or friends, or even being owed money. Addressing these pitfalls or learning from them can be important. It might be that some action can come to a positive outcome, such as learning about mis sold life insurance and taking the steps to overcome that kind of deception you have experienced. Until you address pitfalls, you’ll find it hard to follow up from there.
Consolidate Debts
Consolidating our debts and taking an action plan can help us get on top of things and prevent overdue interest from racking up. In bad cases, having debt charities contact your creditors can be a great idea. At the very least, finding a new means to use the financial lull after Christmas to save up and spend on your outgoings from last year can be very important. The peace of mind this may grant you can be more enjoyable than any form of indulgent purchase. Consider this a set of efforts aimed at your financial hygiene.
Manage Priorities
Manage your financial priorities. You may wish to try and limit your spending this year in order to finally have that collateral to place upon a house. Maybe you are happy taking public transport for the next year as your side project of house flipping will require your full investment. Ensure that you know what your responsibilities are, and how you may have met or failed to meet them in the last year. Not only that – set financial goals. It might be that you spent over $2,000 on eating out last year, money you could have really used for an additional purpose. What practical measures can you take to avoid this next time?
With this approach, we hope you can get your finances together for 2020.