Category: Budgeting

How to Start Your New Financial Year

The New Year is coming very soon and like many other people you would be planning for your New Year celebrations and upcoming time and their challenges. New Year brings a new hope, it is like a new start. You feel motivated and plan for many new things in the upcoming year. You could plan for your financial independency and for that I will help you. In this article I will tell you about how you can become financially independent and strong. People always want to upgrade their financial status with the passage of time and I am sure you will also be looking to search ways to improve your financial status. So starting from the 1st,

Know What You Are

To improve your financial status first you should know that who you are and where you stand because the road to a better future starts from where you are today. You would not be able to create a road map unless you know where you are. So to start a new financial year you should know where you stand. Evaluation of your current status will help you to make a road map to follow, you will be able to set your goals and one day you will be able to achieve your goals effectively. Before starting your new year ask yourself question like do you bought a new house? Do you have a car?  Are you debt free now? And if your answer to these questions in no then it should be yes in the upcoming year. Believe yourself and work to achieve your goals.

There are many online tools and websites that you can use to evaluate your financial years. A lot of these websites are free and easy to use. Personal Capital and Mint.com are these kind of websites. You can link your all accounts to this one place and it will tell you about what your financial picture look like. These websites will tell you where you spend your money and what income you have from all your account and what your net worth is! So before making a start you should capitalize from these tools and should know where you stand in your financial picture.

Saving Goals

Money saving is vital step in the financial progress of a person. I was the one who never tried to save money in my early times but when I was left alone with a lot of debt then it was the only option left to me. This was the time when I got to know that money saving is a very important step for any person’s financial success. So I decided to start saving money so I could never get in debt again. There are ways that will help you to save money but the first and the most important one is to set a goal. Set a point which you want to reach and your time limit. This will help you to carve a road map for your destination. Your saving goal could be anything you could set your goal to buy a new house or buying a car or paying off your debt if you are in debt. You can use some of the digital apps like Digit, Capital One 360 and SmartyPig to take help in setting goals and putting your money in right places.

Kill your Debt!

This is one of the most vital step before starting the New Year. You need to kill your debt and kill it very hard so it could never get in to your life again. You need to hit your debt very hard before the New Year. The holiday session is passing and if you are in debt and have bought new items and increased your debt then this should be your utmost priority to get over your debt. There are hundreds of methods you can pay off your debt easily so you would be doing it as the first priority because this debt is increasing day by day as the interest rate increases every year.

Make your Budget

Budget is your financial goal. Creating your budget is a very important step for financial sustainability, it gives you a road map to you to spend your money. I know many people do not like to make a budget because they think that it will cage their extra expenses. So that is the difference between financially stabled and unstable persons. Because every financially stabled person has always created his budget and has taken care of his earning to come to he stage where they are.

Creating a budget is very important to a person’s life because if you do not know that where your earnings are going then you cannot control your expenditures. How would you control your expenditures if you do not know where are you spending and you do not have a proper record? In order to know you have to make a budget and in that budget you will get know that where are you spending extra money and which expense you have to cut off.

When you create a budget, it helps you to stay determined and focused and gives you a road map to follow. Do not worry if your budget fails for one or two times, try to stick to your budget to fulfil your financial dreams. This is the only way to keep yourself motivated towards your financial goals. So before starting a New Year create a new budget and stick to it.

Eradicate Habits that kills your Budget

It is not that easy as it is looking. With the term eradicate I want you to kill your habits that is destroying your budget every month. There are many habits of you that are not good for your budget like going hungry in the grocery store or going to buy a particular item in the store and coming out with hand full of bags. So to avoid these type of situation you would have to make a proper plan and set a time period to eradicate it because you cannot just overcome it in a single night you would have to make a plan and keep yourself focused for days or months or even years. But you should do it one by one and pick that habit that is in the first at the list of habits destroying your budget. So on this New Year you should start to work on this and your utmost priority should be the habit with extreme loss.

Search for New Income Ideas

You cannot just depend completely upon on your single job to achieve something bigger and it is never a good idea to only look for a job of higher pay to achieve your goals. You should not only do this you should start working and you should work to the maximum hours you can. There are hundreds and thousands of side hustle that you can do to boost your income. In the start this would test your patience and take your time but you would have to be very determined. Many people think that this could be very difficult but the only difficulty is taking a start as you would take a start you would not face any difficulty from then onwards. To achieve your goal of financial stability in the New Year, put yourself in a challenging situation where you would have to work for several jobs and even work while others sleep and enjoy. So go and search for side hustles from this New Year and achieve your goal before the New Year.

So these were some of the thing you need to mark before your New Year to achieve your goals of financial success. One thing you must do is to you should take care of yourself first. Taking care of yourself means your health, your relationships and other matters of life that need to be fixed as they play an important part in your life because it is not about wealth and money alone you need to be happy while having all these things. So not only focusing on your wealth you should also focus on your life so that you could enjoy what you achieve.

You would have seen people who make plans every year that they would buy a new house or they would lose weight or they would certainly achieve any goal. But as the year passes by they get bored and do not follow their plans so this New Year you should not be doing anything like that you should keep yourself focused and determined in all the months of the year so that at the end of the year you could get that what you have thought for yourself.

Drop your comments in the comment section below and do share your experience or thoughts on how you would be starting your New Year and what difficulties have you faced in achieving your goals last year.

Have a good day!