At the beginning of each year, I review my previous expenses to see what my spending habits looked like. As I look over my finances and then start to process my taxes, I allow this to be the time in which I do some financial reflection of how to spend better for the current year. So if you’re in need of some financial guidance for how to be “financially fit” check out these 5 easy tips below and get started!
- Review your EXPENSES – Look over your expenses from the previous year to see about areas in which you can cut back or improve.
- BUDGET Accordingly – After looking over your expenses, did you notice that you were going out for one too many happy hours? Well, cut back! Look at finances realistically and budget what is necessary for each line item. For example, bills, entertainment, auto, personal care, etc.
- Tackle your DEBT – Do you feel like you are making payments on bills that never go away? Then make a plan to get out of debt! Pay more than the minimum. Pay off the smallest bill first. Talk to your billers, and explain your financial situation and see if they can help.
- Start to SAVE – Savings is so important. Think about what you would do if you were faced with a large expense and you did not have any money in savings to cover it. Always try to have a little stash for a rainy day. You can start out with $100 a month and go from there.
- Increase your contribution or start to contribute to your RETIREMENT – Planning early for retirement is important when we are part of a generation who may not have Social Security. So talk to your HR folks and find out what your retirement options are and start contributing!
Links to help you on your way: