The following is an article “How to Meet Your Money Goals Easily” by Marc Primo.
The New Year motivates a lot of people to review their financial goals for the year. Unfortunately for many, the necessary behavioral change needed to achieve such goals are not really the main priority. For others, the will is there but they don’t have the proper know-how to effect these changes into their lifestyle.
Part of saving a significant amount of money in your bank account is setting realistic goals and reviewing your habits, needs, and other such considerations before hitting the road towards financial wellness. Knowing where to start your journey and identifying what lifestyle habits you need to change (or add) will always be the first step in such a challenging endeavor.
To help you meet your money goals this year, follow these simple tips that can help you either earn or save more throughout the year.
Be organized. The lack of discipline in spending usually stems from the absence of an organized financial plan. Not having one can actually hurt you without you knowing how it all happened. It is always difficult to track your purchases without having it all written down on paper prior to parting with your cash. Make a table with separated columns for regular and special expenses, interests and penalties, monthly income, savings, and other relevant details regarding your financials. With an organized financial diary, not only will you be able to easily track where your money goes every month but also set savings goals and projections easily.
Review your spending. Now that you have an organized financial plan, you can review your expenses and cut down on what’s unnecessary to save more money. It’s actually as simple as setting your needs apart from your wants, or those you can do without every month. Do you really need that many cups of coffee a day? Is payday lunch out with your colleagues something you really can’t pass on? Do away with those that won’t affect you negatively as there are still some forms of reward or pleasure that are necessarily integrated in your lifestyle to function properly. However, if other cashless alternatives are available to you such as running on a jogging trail instead of on a treadmill at the gym or downloading an e-book instead of buying a paperback copy at the bookstore, then resort to those instead. Saving up by cutting back is one of the most effective ways to fill up your piggy bank. However, know that it does require strict discipline and a few sacrifices, so you better approach this practice with the right mindset and preparation.
Cash vs. automation. If you’re a debit or credit cardholder, observing proper financial obligations is a must if you want to meet your money goals. That means being religious in paying your loans and doing away with late fees, overdraft charges, and other extra payments. Applying for auto-debit in paying your regular monthly bills such as home utilities, phone and internet subscriptions, or rent is a good idea so you can avoid these unnecessary charges altogether.
Use cash on groceries and other expenses that you can adjust as they vary from month to month. This way you can be more careful in spending your money because you can physically see how it does run out with every purchase. Being able to budget your cash on hand and making wise spending decisions can relieve you of financial stress and encourage you to save whatever spare change you get from minimizing your “wants”.
Setting your money goals this year will always be easier if you are really up for it and have the discipline required to achieve positive financial results. Though it can sometimes be difficult to change your spending habits, setting smaller goals as you start will ease you slowly into planning bigger ones soon as long as your mind is set on your target savings amount.