A New Year’s Resolution To Save
Saving more money is always one of the top New Year’s resolutions. This also is one of the top broken resolutions! Managing your finances better, getting out of debt, or starting a budget are important for financial independence, but can be difficult to accomplish. Here are some tips to help you keep your resolution to save more money!
1) Admit And Acknowledge You Can Do Better!
Being in denial about your money problems or believing that you can’t do better can possibly leave you right where you are, in money trouble! You must first acknowledge that you can do better and admit you need to do better. Overcoming any mental blocks and setting the right attitude is crucial for starting off on the right foot. This also will help you get a clear understanding of where you are financially. Once you get a true status of your current spending habits, assets, liabilities and cash flow statement, you will know where to start from in managing your finances better.
2) Set SMART Goals, And Always Keep The End In Mind.
Once you know where to start from, you need to know where you want to go! This involves setting SMART goals. See artofthinkingsmart.com for a step-by-step process of setting proper SMART goals. Setting financial targets and a vision will help you picture what you want your future to look like. What is it you want? A house? Financial independence? Enough money to retire? College for your kids? Constantly ask yourself if your current money habits will help you meet your SMART goals and lead to smarter financial decisions now.
3) Set Up Automated Systems.
Don’t rely on willpower alone. Being financially disciplined can be tough, so it is helpful to put systems in place. You can have your bank or investment firm automatically transfer a certain percentage of your paycheck to savings or investment account. This way, the money is automatically out of reach and you can’t be tempted to spend it. You also can have any pay raise or bonus go automatically toward investment or savings. You can set up a spending plan and use software to track your spending. This will help you see the big picture in where your money goes.
4) Be Accountable To Family And Friends.
Having a support network will help keep your resolution to save more. Your friends and family can pull for you, pull against you and pull with you to make sure you keep to your spending plan. They can help you see the big picture by reminding you of your long-term goals and take the emotions out of any financial decision.
5) Do It Now!
The longer you wait, the harder it will become to get on track. Albert Einstein called compound interest “the greatest mathematical discovery of all time.” For investments to grow, time is more important than the amount of money you save or the interest you get. So take action now!