It is common practice to seek ways to improve your finances in the New Year because the previous one left you tapped out. While it is okay to try to salvage what is left of your finances, it is important to make financial improvement a habit. This way, you do not struggle to keep up with the bills every new year.
However, even if you have been on track with your finances, there is always room for improvement. A new year offers you an opportunity to go back to the drawing board. Hence, making a new year financial planning checklist should be the top of your activity for every year. It does not matter whether or not you are broke. So, to discover new practices that will improve your finances in the short and long run, keep reading.
How To Improve Your Finances in the New Year and Overcome Financial Frustration
Your financial resolutions for the new year will just be another wish that never came to pass if you do not put in the work. These eight steps will guide you on how to work towards a better financial situation this year.
1. Read Books on Personal Finance
The first step to succeeding at anything is to get knowledgeable at that thing. This also applies to managing money. Hence, reading books on personal is one step in the right direction to improve your finances in the New Year. Although there are tons of books tons of financial books out there, it is important to choose books written by experts. Also, you can start with the ones that have numerous testimonies and are highly recommended. Some of them are:
- Think and Grow Rich by Napoleon Hill
- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley
- Rich Dad Poor Dad by Robert Kiyosaki
- I Will Teach You to Be Rich by Ramit Sethi
- The Intelligent Investor by Benjamin Graham
- Your Money Or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin
- The Total Money Makeover by Dave Ramsey
- The Richest Man in Babylon by George Samuel Clason
To save cost, you can borrow these books from a library or find the ones that are available for free online. However, if you can afford to buy them, it is a worthwhile investment. Also, if your schedule does not allow you enough time to read, go for the soft copies and listen to them using text-to-speech apps. This way, you can read while working out or when you are on the move.
2. Set Financial Goals
Goals give you a sense of direction. Hence, if you have in mind to improve your finances in the New Year you need to clearly spell out specific things you want to achieve. Truth is, managing money can be daunting and you may not be able to achieve all-around financial progress at once. However, if you focus on one thing at a time, you will achieve all your aims sooner than you expect.
Your goals will depend largely on your current financial situation and where you want to be before the year ends. More so, ensure that your goals are realistic and important enough to keep you going.
3. Replan Your Budget
Perhaps you have an existing budget (or not). Whatever the case, now that you want to pay more attention to your finance, it is important for you to write a new budget that aligns with your goals. You may not do away with the old one completely, but tweak it to make room for your big goal.
Generally, you should work towards cutting down expenses as much as possible so that you can save money for important things. This article on ways to save money after the holiday season will help you up your saving game and teach you some new year budgeting tips.
4. Stop Relying on Credit Cards
A credit card may seem like a friend indeed, but it is one of the easiest ways to wind up with huge debt. If you want to take charge of your finance, improve it and achieve your goals, then it’s about time you did away with your credit card.
This may seem difficult, but if you make a good budget and stick to it, you will see that you do not need the card as much as you thought you did.
Check out this tip and DIY inspirations that can help you save more money
5. Save for Investment
It is okay to save money for other little projects. However, if you want to make moves that will improve your finances in the New Year, you need to start investing as much as you save.
One of the smartest ways to invest even with little money is to save it in a high-yield savings account. These online accounts pay you reasonable interest on your money. You can also learn more about stocks, bonds, mutual funds and real estate and invest in them.
Similarly, you can invest in learning a new skill that will fetch you some extra cash during your spare time. Some in-demand digital skills are:
- Content marketing
- Search engine marketing (SEM)
- Social media management
- Email marketing
- Data analysis
You may wonder what upskilling has to do with improving your finance. Well, if anyone is going to get a promotion at work, it is the guy who brings the extra to the table. And if anyone is going to get a salary increase, it is most likely the guy who has earned a promotion.
Getting better at what you do positions you for better financial opportunities one way or another. This also allows you to apply to better-paying firms if there is no room for promotions in your company.
7. Get Insured
Insurances are not talked about enough. Yet, they are crucial if you want to improve your finances in the New Year. While it may seem to burden your immediate income, insurance saves you a lot in the long run.
You can start with one of the general insurances – health insurance and maybe car insurance if you have one. More so, you have to do your research to find the best and most affordable insurance companies in your country.
8. Do Not Ignore Retirement
It is never too early to plan for your retirement, but it can be too late. If you keep waiting to contribute to your retirement when your budget gets lighter, you may end up without a retirement plan.
As you grow older, you are met with more and more responsibilities. Hence, you should start contributing now so that you don’t have to struggle with catching up later in the future.
If you implement the steps in this book, there is no doubt you will improve your finances in the New Year. It is important to note that financial growth is a process and will not happen overnight. However, following the right steps make achieving your goals faster and less burdensome.
If you found these financial tips for the New Year helpful, kindly let us know in the comment section below.