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Friday, December 2, 2022

How to Start Getting Your Finances in Order for the New Year

Man counting money


Even if you feel like your finances are not where they should be, it’s never too late to do something about them. The new year is a great time to evaluate your money. But you don’t have to wait until 2023 and getting your finances in order now allows you to start the new year off on the right foot.

Focus on Debt

Debt can hold you back from your financial goals. Much of your money is going toward interest payments, leaving you less money for investing, spending, or saving. But paying off your debt can be quite freeing because it gives you more room in your monthly budget. If you are working on paying it back, there are still ways to free up more money in your budget.

You can refinance student loan debt to lower overall expenses in this area. If you look to refinancing student loans with NaviRefi, it can help you simplify your finances as you work to get things in order. If you don’t have much debt, keep working on paying off bills and credit cards in full each month. If you get behind, the interest payments can be high. Try to pay more than the minimum balance if you can. Paying only the minimum balance gives the credit card companies more money because of the high interest you will end up paying.

Cut Expensive Habits

Expensive habits can add up quickly, and once you spend the money, it’s gone. Smoking and drinking are both expensive, and so are eating out and buying coffee instead of making your own. Another expensive habit is watching streaming services. Take count of the number of streaming services you currently pay for. If you use all the streaming services you subscribe to and your budget isn't too stretched, you don’t have to cut any. But it’s common to subscribe to services you don’t use on a regular basis, so you could save money by cutting down on what you don't need anymore. You don't have to stop at streaming services, however.



If you don’t use your gym membership, you may want to cancel it and just exercise at home. Meal kits and music subscription services can both be expensive as well. Spend some time going through bank account and credit card statements to remind yourself what you are paying for. Also, find little things that cost nothing and spark joy and can make you happy. Many are surprised to learn that they don’t have to always spend money to feel that joy.
 
Set Up a Budget That Works for You

If you are struggling to stick to your budget, take some time to switch to a different system that works better for you. There is no one-size-fits-all approach, so if a budget isn't working for you, it likely isn't the right system for you. Managing your money isn't just about math and numbers. You also need to be motivated enough to keep working toward your goals and having the right tools at your fingertips can help you get there. Take some time to research the different systems out there. When you do your budget right, it should be freeing. It lets you spend money without feeling guilty about it, and it lets you work toward your goals. Meeting these goals can give you better peace of mind.

How to Start Getting Your Finances in Order for the New Year
Photo by Karolina Grabowska: https://www.pexels.com/photo/person-counting-cash-money-4475524/

Invest in Yourself as Well

Investing in yourself is a great way to get ahead, and it is a good way to spend your money. Investing in yourself can give you a stronger sense of purpose, and it can help you feel personally fulfilled, and investing in yourself can give you large financial returns. Perhaps you spend some time improving your skill set at work. You may learn how to complete more tasks so you can start taking on more responsibility at work. This could lead to a promotion or raise at your job.

It could even take you down an entirely different career path. Learning a trade such as electrical work, carpentry, or plumbing can save you money at home because you will be better able to diagnose and fix these issues by yourself instead of hiring someone to do it for you. Learning about money lets you make more informed decisions about your finances. You are your best asset, so take some time to invest in yourself and grow.
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No content on this site, regardless of date, should be used to replace direct medical advice from your doctor or another trained practitioner.
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