Everyone could use a few helpful tips when it comes to saving money, and the new year brings renewed importance for figuring out a financial plan for the future. Starting the year with a strategy can be incredibly helpful for keeping money in your wallet and saving more.
Most people say, as part of their New Years resolution, that saving money is on the top of the list. After the holidays, most of us are tightening our purse strings and trying to start the year on a positive note which will continue throughout. And the idea of a financial plan doesn’t just mean having an idea of what you’re going to do, it means actually writing down what the exact plan will be. Of course, this isn’t a rigid agenda, and it most certainly will change a lot over the year, but physically writing down how you intend to save money will instill those good habits. This financial plan should outline your income, and how your spending should be in line with it. The basic idea isn’t complicated; don’t spend more than you earn. It sounds simple enough, but staying on top of that can be the hard part, so writing it down can keep you on track with the reality of how much disposable income you really have to throw around.
Never buy what you can’t afford, something that can be difficult when new, cool stuff is constantly coming out throughout the year. You may just have to be patient to buy the next generation console or new TV, or make do with older appliances until you know you can afford the new one. This is all part of understanding what is important to spend money on, what you need versus what you want. And the more frugal you are, the better it will feel when you realize you actually can afford something you want.
