A new decade is on the horizon, so there’s no better time to recommit, revamp or reset your financial goals. We can’t afford to let another year go by without peeling back the layers of our strengths and weaknesses as it relates to our finances. Use these heavy hitters to guarantee your money well won’t run dry in 2020 and beyond.
Don’t rush major purchases – or any for that matter
Sometimes we all have that urge to buy that item we’ve had our eye on, and once it’s in our head it’s often difficult for the imagery to be removed – even if it doesn’t quite sync up with what’s in our bank account. Take your time with all purchases, no matter the amount. If you just have to stop and get that coffee on the way to work use a reloadable gift or debit card to control your spending. This will create a conscious habit of thinking about every single purchase no matter the dollar amount, saving you money in the long run.
Bite size your yearly finance goals
It’s great to have large, overarching goals such as – getting rid of debt, saving more or cutting down recreational spending. But, how exactly do you plan on achieving this goal? Your goals should have mini milestones that you can actively work toward. For instance, getting rid of debt is the ‘what’, while paying an extra $30 a month is the ‘how’ to turn the goal into a reality. Evaluate your list of how’s on a monthly basis to make sure you’re on track to crush the bullseye target, while building momentum in the process.
Identify your needs versus wants
Be honest; when is the last time you actually looked at your budget? Create a running list of all monthly expenses. Add a column to identify what’s a necessity, such as rent, mortgage payments and utility bills. Complete this same exercise reviewing your bank statements. Highlight any purchases that were impulse buys or wants, which will help you personally identify how you typically spend money in a given time period. No one is saying you can’t have wants to a certain extent – however there is and should be limits in place to avoid overspending in these areas. Create buckets for entertainment and self-care to keep yourself on track with your goals.